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2018 (7) TMI 837 - HC - VAT and Sales TaxClassification of goods - dyes and chemicals, Ammonia Victoria blue, rhodamine, methyl violet, oil blue, oil green and croum scarlet - whether the goods purchased and sold by the assessee, viz., Ammonia Victoria blue, rohodamine, methyl violet, oil blue, oil green and croum scarlet, which according to them, are basic dyes and acid dyes, taxable at 8%, as per Entry 16 of Part C of the First Schedule or colours and pigments, liable to tax at 16% under Entry 18(II) and (III) of Part E of the 1st Schedule? Held that:- During the assessment year 2000-01, most of the purchases are made from Ahmadabad, Mumbai, Sinnar and other places and a cursory look at the interstate purchase details, reveals that the sellers are mostly dealing with chemicals and to name a few., Aspit Enterprises, Ahmadabad, Shree Dye Chemicals, Ahamadabad, Tirupati Dye Stuff, Ahmadabad, etc. - Similarly, perusal of the local sale purchases, also reflect purchase from sellers, dealing with chemicals. Details found in the assessment file, do not suggest strong evidence that the sellers are engaged in sale or paints or enamels. Goods grouped in Entry 18(II) and (III) of Part E of the 1st Schedule, relate to paints and enamels not otherwise specified in this schedule including powder paints, stiff paste paints and liquid paints; colours; and pigments, including water pigments and leather finishes. In Tejraj Paramel v. State of Orissa [1994 (11) TMI 406 - ORISSA HIGH COURT], it is held that the meaning of the word has to be judged by the company it keeps. When the group of words in Entry 16 of Part C of the 1st Schedule speaks of dyes, which is soluble, the goods mentioned in Entry 18(II) and (III) of Part A of the 1st Schedule, relate to paints and enamels, colours, pigments, etc. As rightly observed by the Tribunal, Legislature has grouped the goods, dyes in a different entry than paints, enamels, powder paints, colours and pigments, etc. Approach of the Tribunal in ascertaining the legislative intent with reference to the disputed word and scrutiny of the purchase invoices of the assessee, to ascertain the goods purchase and sold, to arrive at a conclusion that the goods sold are 'dyes', taxable at 8% as per Entry 16 of the Part C of the 1st Schedule, cannot be said to be perverse. Tax Case Revision is dismissed.
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