2016 (9) TMI 410 - SUPREME COURT

Classification - bitumen emulsion - rate of tax - 12.5% - residuary entry - 4% - Serial no. 22 Part A of Schedule II to the VAT Act - 20% - Notification No. 100 dated 15.1.2000 issued under the erstwhile U.P. Trade Tax Act, 1948 - Section 11 of the U.P. Trade Tax Act, 1948 - Sections 81 and 58 of the VAT Act, 2008 - whether the Bitumen and Bitumen Emulsion are one and the same commodity for the purposes of interpretation of Entry No. 22 Schedule II Part A of the U.P. Value Added Tax Act, 2002 as was originaly enacted i.e. upto enforcement of notification no. 2758 dated 29.9.2008 - Held that: - the processes result in improvement of the quality of bitumen and there is no change in the characteristics or identity of bitumen so as to transform bitumen into a new product having an identity, characteristic and use. It has been ruled therein that there is a fallacy in the argument raised by the Revenue that bitumen per se would only include its solid hard form which melts at high temperature and not bitumen emulsion. The two varieties and types carry the same composition, do not differ in character and have the same commercial identity i.e. bitumen. That apart, the use or end use test is also satisfied - bitumen and bitumen emulsion are one and the same commodity - taxable at 4% - appeal dismissed - decided against Revenue.