Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2016 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1083 - HC - VAT and Sales TaxTaxability - classification of goods - rexine cloth - Entry 51 of Schedule B of the Act - Entry 54 of Schedule 'B' of the Act - clarification sought from the Financial Commissioner and Principal Secretary to the Government of Haryana, Department of Excise and Taxation under Section 56(3) of the Haryana Value Added Tax Act, 2003 - Whether the product being manufactured by the applicant which is technically known as “Coated Fabric” and in common parlance known as “Rexin” falling under Central Excise Tariff Heading 5903 is covered under entry 51 of Schedule B appended to the Haryana Value Added Tax Act, 2003? - Held that: - the decision in the case Allahabad High Court in Commissioner, Sales Tax, U. P. , Lucknow v. Laxmi Leather Cloth Industries Pvt. Ltd. [2003 (12) TMI 619 - ALLAHABAD HIGH COURT] is relied upon. The product being manufactured by the appellant, namely, coated fabric also known as leather cloth/rexin falls in the term 'textile'. The process for manufacture of coated fabric by the appellant is noticed in the order of the Tribunal in the following terms: (i) PVC resin paste is prepared which is coated on a paper which is called 'release paper'. (ii) A cotton fabric is pasted on the release paper. (iii) This is passed through a heated oven and the resin paste due to the process of heating is coated on the textile fabric. (iv) The release paper is removed and the final product so manufactured is called 'PVC Coated Fabric'.” Whether the product being manufactured by the appellant falls in Entry 54 of Schedule 'B' of the Act, can still be exempted from taxation? - Entry 54 of Schedule 'B' of the Act is in two parts. First part mentions leather cloth and inferior or imitation leather cloth ordinarily used in book binding, whereas the second part mentions rubber used tissue or synthetic water tissue or synthetic water-proof fabrics whether single textured or double textured and book binding cotton fabrics. The condition that additional excise duty in lieu of sales tax is leviable is applicable only on the products mentioned in second part. The type of goods mentioned in two parts are altogether different. The same are separated by “colon”. - whether the condition regarding leviability of additional excise duty in lieu of sales tax is applicable? Held that: - Once a punctuation mark has a specific meaning, it has to be given effect to. It cannot be treated as otiose. Meaning thereby, there is a break in sentence at that stage. It is also evident from a plain reading of the entry itself, which uses the word 'and' in between “leather cloth” & “inferior or imitation leather cloth ordinarily used in book binding”. Thereafter, punctuation mark “colon” has been used, which is followed by other types of goods mentioned therein by using the word 'or' therein and finally using the word 'and' with a condition that additional excise duty in lieu of sales tax is levied on them. In case, there is a break in sentence, then certainly the condition of levy of additional excise duty in lieu of sales tax will not be applicable to the goods mentioned in the first part thereof - As leather cloth, which is manufactured by the appellant, is specifically mentioned in Entry 54 of the Act and that no condition of levy of additional excise duty in lieu of sales tax is applicable thereon, the appellant will be entitled to benefits arising therefrom. If a particular goods fall in two different entries, whether it is open for the dealer to invoke any of the entries, which is more beneficial? - Held that: - the principle that special will exclude general may have also to be considered - issue not considered. Appeal allowed - decided in favor of assessee.
|