TMI Blog2010 (6) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... he Third Schedule to the KVAT Act cannot be accepted because none of the items covered by the sub-entry (19) has the same HSN code for margarine provided in the customs tariff. In fact it is clear from entry 38(19) that all four items referred to there are covered under six digit HSN 1516.20. We are of the view that petitioner's contention that margarine falls under other edible oils falling under entry 38(19) is incorrect and unacceptable. We, therefore, hold that margarine in all forms fall under HSN code 1517 under the customs tariff and consequently it is covered by entry 64(8) of S.R.O. No. 82 of 2006, which has the same HSN code taxable at 12.5 per cent. - 24 of 2010 - - - Dated:- 8-6-2010 - RAMACHANDRAN NAIR C.N. AND GOPINATHAN P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is essentially hydrogenated fat and its ingredient being vegetable oil, will fall under other edible oils, including vanaspati under entry 38(19)(d) of the KVAT Act. The Government Pleader, on the other hand, contended that margarine in all forms are covered by common entry 64(8) under S.R.O. No. 82 of 2006 issued by the Government under section 6(1)(d) of the Act. For easy reference, we extract hereunder the entries of S.R.O. and the Schedule herein. Entry 64 of S.R.O. No. 82 of 2006. Sl. No (1) Description of commodities (2) HSN Code (3) 64. Milk products including, condensed milk, ghee, butter, butter oil, ice creams, margarine, whether or not bott ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel for the petitioner relied on a certificate issued by the Chief Food Inspector who has explained margarine with reference to the provisions of the Prevention of Food Adulteration Act as follows: Margarine means an emulsion of edible oils and fats with water comes under bakery vanaspati, an industrial product, is different from the margarine made out of milk fat with vegetable oils, a consumer product, comes under milk product. Both are called margarine. Relying on the Food Inspector's letter, counsel for the petitioner contended that margarine sold by him not being table margarine will not fall under entry 64 of S.R.O. No. 82 of 2006. The Government Pleader contended that the notification does not make any d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sub-entry (19) has the same HSN code for margarine provided in the customs tariff. In fact it is clear from entry 38(19) that all four items referred to there are covered under six digit HSN 1516.20. We are of the view that petitioner's contention that margarine falls under other edible oils falling under entry 38(19) is incorrect and unacceptable. We, therefore, hold that margarine in all forms fall under HSN code 1517 under the customs tariff and consequently it is covered by entry 64(8) of S.R.O. No. 82 of 2006, which has the same HSN code taxable at 12.5 per cent. Counsel for the petitioner has raised a contention that margarine referred to in entry 64(8) of S.R.O. No. 82/06 is only margarine made with one of the milk produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ird Schedule. On the other hand, margarine in all its forms are covered by entry 64(8) of the Third Schedule to the KVAT Act, which has the same HSN code for margarine contained in the Customs Tariff Act. Even though counsel has relied on three other notifications issued by the Government under the Entry Tax Act wherein margarine is included along with edible oils, we do not think the same can be relied on for purpose of classification under the VAT regime, where classification is done only based on HSN code numbers. Further even under the notification issued under the Entry Tax Act relied on by the petitioner margarine is treated as a separate item along with edible oils and not as edible oils or hydrogenated oil. We, therefore, uphold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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