TMI Blog2011 (3) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the decision of the A. O. Since long period, view taken by the Tribunal holds the field, in the case of Merind Ltd, that once a particular view is taken by the authority, it should not be disturbed - view taken by the Tribunal that margarine is vanaspati and it is to be classified under Schedule C, entry 100 and taxable at four per cent is a legal and correct view and cannot be faulted out. - Sales Tax Appeal No. 26 of 2010 - - - Dated:- 4-3-2011 - J. P. Devadhar, Mridula Bhatkar, JJ. V. A. Sonpal, A Panel Counsel for the Appellant P. V. Surte and S. P. Surte for the Respondent JUDGEMENT Mridula Bhatkar, J:- The present appeal is filed directing against the judgment dated July 9, 2010 passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Maharashtra Value Added Tax Act of 2002. Margarine was earlier covered under the Act by Schedule C, entry 107(11)(FF) attracting tax at four per cent for the period from February 1, 2006 (the date on which VAT came into force) to January 31, 2008. In the present case, Tribunal held that the margarine manufactured by the respondents is classifiable under Schedule C, entry 100 taxable at four per cent. Validity of the order of the Tribunal is challenged in this appeal. We heard learned counsel appearing for the appellant-Revenue and also respondents at length. The submissions of both the parties can be summarised in brief. It was argued on behalf of the appellants that margarine is made out of hydrogenated oil and so it is neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpreting entries in taxing statutes for calculating taxes, common parlance test is to be applied and not chemical or laboratory test. In common parlance, the margarine is known as vanaspati, i.e., hydrogenated vanaspati oil or not, is to be answered and the Tribunal has failed to appreciate this point especially as per the ratio laid down in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer reported in [1961] 12 STC 286 (SC) and in Commissioner of Central Excise, Nagpur v. Shree Baidyanath Ayurved Bhawan Ltd. reported in [2009] 237 ELT 225 (SC), wherein it was held that wherever the term is not defined in the statutes, common parlance theory is to be adopted. Margarine is not defined in the Maharashtra Value Added Tax Act, 2002. The ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian margarine because of its use, contents and nature. The opinion of scientist Dr. D. N. Bhowmick who is working as a professor and head of the Department of Oils, Oleochemicals and Surfactants Technology of Mumbai University, Department of Chemical Technology (UDC), Matunga, Mumbai, is produced to explain the issue. Professor Bhowmick has discussed the chemical composition of hydrogenated vegetable oils and margarine and has opined as follows:- (A) Molecular structure of triglycerides in edible oil, vanaspati and margarine are same. (B) Margarine is vanaspati (hydrogenated vegetable oil) with about 12-16 per cent water and other additives. (C) Edible oils, HVO and margarine can be interchangeably used as cooking med ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is sold by Kamani Oil Industries Pvt. Ltd., is taxable at four per cent. M/s. Velani and Co., Kamani Oil Industries Pvt. Ltd., Margarine camy. Margarine produced by Godrej Hershby Ltd., Margarine which is also taxable at four per cent VAT. He relied on Merind Ltd. v. State of Maharashtra reported in [2004] 136 STC 462 (Bom) on the point that if at all it is a settled view, it is not to be disturbed. Vanaspati is an independent product made out of vegetable oil and margarine is basically a western product made out of vegetable oil. Thus both the products originate from edible vegetable oil and both the products have to undergo process of hydrogenation of the vegetable oil. Emulsification is further process which is carried out to obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the expert, i.e., a certificate given by Dr. Bhowmick, wherein he has stated that margarine is a food in plastic form or liquid emulsion containing not less than 80 per cent fat. Aqueous phase ingredient is water and milk products . Oil, vanaspati and margarine, all are essentially mixed triglycerides of the fatty acids. Oil and vanaspati contained moisture only in trace quantities whereas, margarine being a formulated product contained about 12 to 16 per cent moisture and other additives. Margarine is formulated using hydrogenated vegetable oil and essentially consists of five operations:- (1) emulsification, (2) cooling, (3) working, (4) resting, and (5) packaging and margarine is vanaspati with about 12 to 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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