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2020 (1) TMI 550 - HC - VAT and Sales TaxClassification of goods - Bitumen Emulsion - whether classifiable as a product under S.No. 18 of Part (B) of the First Schedule to the Tamil Nadu Value Added Tax Act, 2006 or under residuary heading at S.No. 69 of Part (C) of the First Schedule under the TANVAT Act attracting 14% of Value Added Tax. HELD THAT:- “Bitumen Emulsion” is a processed “Bitumen”, but the process does not change its composition, commercial identity or its use. The Court further held that the “Bitumen Emulsion” is regarded and performs the same function as “Bitumen” and as a result of processing, neither the primary character nor the composition is lost - Thus “Bitumen Emulsion” is to be classified as “Bitumen” falling under Serial 18 of Part B of the First Schedule to the TNVAT Act, 2006 and is liable to be taxed at the rate prescribed therein for “Bitumen”. Hon'ble Supreme Court in the case of COMMISSIONER OF COMMERCIAL TAX, U.P. VERSUS M/S. A.R. THERMOSETS (PVT.) LTD. [2016 (9) TMI 410 - SUPREME COURT] has 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. Petition allowed - decided in favor of petitioner.
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