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2023 (3) TMI 273 - HC - VAT and Sales TaxClassification of goods - rate of tax - Choloromint Herbasol - Happydent White - Chatar Patar - liable to tax at 12.5%, as per Schedule ‘F’ of PVAT Act, 2005 or @ 4% tax under the residue entry? - HELD THAT:- In the present case, the issue that the goods in question namely ‘‘Choloromint Herbasol’’ and ‘Happydent’ are medicines have been examined and has attained finality as per the judgments by the Uttrakhand High Court, Allahabad High Court which has been affirmed by the Hon’ble Supreme Court by dismissing the SLP against the judgment passed by Allahabad High Court. Reference can now be made to the observations made by the Uttarakhand High Court in the case of Commissioner Trade Tax Vs. Perfetti Van Mell [[2008 (7) TMI 870 - UTTARAKHAND HIGH COURT]] with respect to the appellant-Company itself, the Uttarakhand High Court has observed that the items ‘Choloromint with Herbasol’ and ‘Happydent White’ are manufactured by the assessee under the drug licence issued to it by the Directorate of Ayurvedic Medicines of State of Haryana. Even if, for the purpose of utility, ‘Choloromint with Herbasol’ as mouth freshners and that of ‘Happydent White’ (baking soda with mint flavor) to keep the teeth clean, these items will not be confectionary items, specially when these items are manufactured under a valid drug licence. The Uttrakhand High Court held the above-said two items, ‘Choloromint with Herbasol’ and ‘Happydent White’ being manufactured under a valid drug licence are ayurvedic medicines and trade tax payable on said items @ 4% as per clause (b) of the Sub-Section (2) of Section 4 of Uttranchal Value Added Tax, 2005. In the present case, the Revenue-respondent has not led any evidence or produced any material to discharge the onus on it. Once the goods have been manufactured by the assessee under the Drugs Licence issued by the Directorate of Ayurvedic Medicines then the ayurvedic medicines would fall under Entry 31 of Schedule B attached with the Punjab Value Added Tax Act (PVAT), 2005 and is liable to be taxed @4% as per consistent view taken by the Uttarakhand High Court. The question posed for consideration in this appeal is answered against the respondent-Revenue and in favour of the assessee-appellant - Appeal allowed.
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