Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2021 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 1038 - HC - VAT and Sales TaxClassification of goods - powder quoting material - to be classified under Central Excise Tariff Heading (CTH) 39 or under Entry 51 of 3rd Schedule of the Act? - applicability of Notification dated 03.04.2005 - Section 4(1)(b) of Central Excise Act - HELD THAT:- Section 4(1)(b) of the Act prescribe for liability to tax and rates thereof. Section 4(1)(ii) prescribes that in respect of goods mentioned in 3rd Schedule, the tax shall be levied at the rate of five and half percent. Entry 51 of Schedule III of the Act covers industrial inputs and packing materials as may be notified. The State Government has issued a Notification dated 30.04.2005 notifying the industrial inputs and packing materials. Entry 133 of the aforesaid Notification covers Chapter Heading No.3907, which in turn covers polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallylesters and other polyesters, in primary forms. The description against Entry No.133 of the Notification matches fully with corresponding description in the Central Excise Act and therefore, in terms of Explanation III to the Notification, all the commodities covered for the purpose of the said tariff heading will be covered under Entry No.133 of the Notification. Therefore, the product of the petitioner which falls under Chapter Heading No.3907, is classified as industrial input under Serial No.133 of the Notification dated 30.04.2005 - The product namely powder coating material is primarily composed of 'Epoxide Resins' or 'Polyester Resins' and additional items are merely additives. Therefore, in terms of Rule 3(b) of General Rules of Interpretation, the classification shall be determined on the basis of 'Epoxy Resin' or 'Polyester Resin'. The reliance placed by the Respondents on the division bench decision of this court in the case of the petitioner is of no assistance to the Respondents as the product was classified by the petitioner in that case under CTH 3911.90.90 which was not covered under the Notification dated 30.04.2005. In the instant case, the product of the petitioner is covered under the Notification dated 30.04.2005. Petition allowed.
|