TMI Blog2015 (3) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... ible) fell within Entry 43 or Entry 131 or both for the purposes of tax. The Tribunal has in any case not accepted the finding of the appellate authority or the assessing officer that edible coconut oil should be treated as an unclassified item taxable at 12.5%. - Entry 43 of Schedule II Part A of the U.P. VAT Act, 2008 mentions edible oil and oil cake therefore if Parachute pure coconut oil which is marked as "edible" on its packaging cannot be labeled as hair oil and therefore an unclassified item liable to tax at 12.5% it must necessarily be classified as edible oil under Entry no. 43 of Schedule II Part A and therefore, in my opinion would be liable to tax at 4% and not as an unclassified item taxable at 12.5%. Word Starch as used in Entry 118 of Schedule II Part A of the U.P. VAT Act, 2008 has neither been referred to as edible or inedible and therefore Revive Starch must be held to be falling within the meaning of word Starch as used in Entry 118. If it had been the intention of the Legislature to distinguish between edible and inedible Starch, the Entry 118 itself would have explicitly said so and therefore when the Legislature itself is silent a meaning or interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onut oil is concerned, the Tribunal has held that the findings of the authorities below that merely because Parachute coconut oil is commonly associated with hair oil therefore the product in question should be treated as hair oil and not as edible oil under Entry 43 or Entry 131 of Schedule II Part A to the U.P. VAT Act, 2008 is not correct. It is however, noticed that having observed as much the Tribunal fell short of itself recording any finding as to whether coconut oil fell within entry 43 or 131 of Schedule II Part A of the U.P. VAT Act, 2008 and therefore remitted all the appeals to the appellate authority for reconsideration. So far the Revive Instant Starch is concerned, the Tribunal held that Entry no. 118 of Schedule II Part A mentions Starch, Sago and sabudana and has rejected the claim of the revisionist that Revive Starch be treated as classified item under Entry 118 of the Schedule II Part A. I have heard Shri Bharat Ji Agarwal, learned senior counsel assisted by Shri Shubham Agrawal for the revisionist and Sri Sanjeev Shankdhar, learned counsel for the respondent, Revenue. So far as the finding of the Tribunal on the question of coconut oil is concerned, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as an unclassified item. The submission further is that Entry 118 of the Schedule II, Part A mentions only Starch and does not draw any distinction between edible starch and non edible starch and therefore it would make no difference if by addition of about 3% of solium laury 1 sulphate, silicon dioxide, perfume assem B, titanium dioxide, microguard and colour granules collectively it would became inedible and therefore the Tribunal was not correct in holding that since Revive Starch is inedible it cannot be treated as Starch equivalent to Starch mentioned in Entry 118 which is clubbed with Sago and Sabudana nor is the revisionist entitled to the benefit of Section 70 of the U.P. VAT Act or the Central Excise Tariff Act, 1985 heading no. 3505.10 which mentions dextrines and other modified starches Section 70 of the U.P. VAT Act provides for allotment of commodity code and provides that in respect of any entry of any Schedule of the Act, the State Government may prepare a list of commodities which shall be deemed covered under the said entry of the said Schedule and may on the basis of harmonized system of nomenclature as adopted by the Government of India under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt reads as under: It is clear that there is a distinction between paddy , as found in Item 8 of the Second Schedule, and rice , as mentioned under Item 66 of the First Schedule. Apparently, the removal of the husk makes this difference. It is true that the First Schedule, which contains as many as 136 items, includes a number of separate fairly detailed entries. Entry 58 is for bran or husk of rice and Entry 59 is for deoiled bran of rice . It appears, therefore, that rice in husk is paddy . When it is removed from husk, the husk and rice become separately taxable. But, there are not separate entries for rice and rice reduced into an edible form by heating or parching without any addition of ingredients or appreciable changes in chemical composition. The term rice is wide enough to include rice in its various forms whether edible or inedible. Rice in the form of grain is not edible Parched rice and puffed rice are edible. But, the entry rice seems to us to cover bothy forms of rice. At any rate, it is wide enough to cover them. In paragraph 8 of the said judgment the Supreme Court further held as under: We do not think that it is fair to so interpret a taxi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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