TMI Blog2011 (12) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... VI, and therefore, it falls under residuary Schedule V to the VAT Act. In that view of the matter, the decisions relied on by the counsel for the petitioner which are mostly to the effect that the onus of proving the classification of goods lies on the Revenue, are not helpful to the petitioner and that the remaining decisions are not relevant to the point involved in this case. In the circumstances, we are of the considered opinion that the Tribunal as well as the Ruling Authority rightly found that the product in question falls under residuary Schedule V and not under entry 100(4) of Schedule IV to the VAT Act, and therefore, it is taxable at 12.5 per cent. Hence, there are no grounds to interfere with the order impugned. - Tax Revisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 67 of the VAT Act: Whether the product 'Rich's Whip Topping', a raw material for bakery and allied industries falls under entry 100 of Schedule IV to the APVAT Act, 2005 or any other entry of Schedule IV? The ruling authority after examining the issue, vide Advance Ruling No. A.R.Com/86/2008 dated May 22, 2009, held that the commodity Rich's Whip Topping, which is an outcome of the process of emulsification, pasteurization, homogenization, chilling and ageing of the combination of the solution of sugar and hydrogenated vegetable oil, is not enumerated either in sub-item of entry 100 of Schedule IV or under any other entry of Schedule IV to the VAT Act, as such, it is liable to tax at the rate of 12.5 per cent under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumed directly by anyone except using the same for making bakery products and in hotel industry. The counsel would also submit that the ruling authority and the Tribunal are ignorant of the amendment made to entry 100 of Schedule IV to the VAT Act by Act No. 28 of 2008 with effect from July 1, 2008, which says that the goods sold as industrial inputs would fall under entry 100 of Schedule IV to the VAT Act, and erroneously classified the product in question that it falls under the residuary Schedule V to the VAT Act. In support of his contentions, the counsel relied on the decisions of the apex court in State of Tamil Nadu v. Pyare Lal Malhotra [1976] 37 STC 319 (SC); AIR 1976 SC 800, Dunlop India Ltd. v. Union of India AIR 1977 SC 597, Bh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sl. No. Heading No. Sub-heading No. Description of goods (1) (2) (3) (4) 4. 1518 Animal or vegetable fats boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically odified; inedible mixtures or preparations of fats and oils of this chapter. SCHEDULE V (See sub-section (3) of section 4) Goods taxable at standard rate (RNR) of 12.5% All goods other than those specified in Schedules I, III, IV and VI Even according to the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 VST 373 (SC); [2007] 6 SCC 365 at paragraph 26 held as under (pages 381 and 382 in 8 VST): We have heard the learned counsel for the parties at length and carefully examined various judgments cited by the appellant and the respondents. It is an admitted position that the ingredients which are used in preparation of masala after grinding and mixing lose their own identity and character and a new product separately known to the commercial world comes into existence. According to the ratio in Pyare Lal Malhotra's case [1976] 37 STC 319 (SC); [1976] 1 SCC 834 the sales tax is intended to tax sales of different commercial commodities and not to tax the production or manufacture of particular substances out of which these commodities m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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