TMI Blog2006 (9) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... on BISBRI brand bakery margarine sold by the petitioner at four per cent treating it as edible oil under item 17A of the Second Schedule of Notification SRO No. 1728 of 1993 for the assessment year 1997-98. Margarine is one of the items falling under entry 90 of the First Schedule to the Kerala General Sales Tax Act, 1963 which attracts tax at the point of first sale at eight per cent. Entry 90 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Description of goods Existing rate of tax (percentage) Reduced rate of tax (percentage) 17A Edible oil 8 4 However, when concessional rate is granted under notification above referred, the concession is limited to edible oil. Obviously item 90 of the First Schedule covers inedibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the respondent because the manufacturer of the product BISBRI brand bakery margarine specifically prohibits use of the item except as raw material for bakery/confectionery industry which is printed conspicuously in the leaflet produced. Therefore, BISBRI brand bakery margarine sold by the petitioner cannot be used for all the purposes for which edible oil including hydrogenated oil and vana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear that the respondent's product, namely, bakery margarine is a product made for a specific purpose, i.e., for use in bakery and confectionery industry and the manufacturer has specifically prohibited use of the item for any other purpose. The edible oil, on the other hand, whether in hydrogenated form or not, is used for all cooking purposes. Even though hydrogenated oil or refined oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und. Therefore, we are of the view that bakery margarine is not edible oil covered by the notification and clarified in the circular and therefore, the decision of the Tribunal holding otherwise is liable to be reversed. We therefore allow the revision by reversing the order of the Tribunal and upholding the assessment of bakery margarine at eight per cent under entry 90 of the First Schedule to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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