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2017 (5) TMI 1121 - HC - VAT and Sales TaxRate of tax - classification - Mehndi Cone - whether 'Mehndi Cone' would be covered by Entry 23 of Schedule-1 of U.P. VAT Act or not? - Held that: - The entry specified in the notification grants exemption under Schedule-1 to Mehndi leaves or powder and not Mehndi itself - the 'Mehndi Cone' is a new product, which comes into being after Mehndi powder is processed by adding oil and chemicals. Once a distinct new entity has come into existence, it cannot be said to be either Mehndi leave or Mehndi powder. Exemption is not allowed to Mehndi or all its derivatives, but is restricted to 'Mehndi leaves' and 'Mehndi powder' alone - The Tribunal has rightly come to the conclusion that the paste, which is created in the process is a cosmetic preparation as various oil and chemicals are added to Mehndi powder so as to exclude it from the purview of exemption notification. 'Mehndi Cone' does not fall within the exemption notification issued under Schedule-I - appeal dismissed - decided against Revenue.
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