GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (3) TMI 787 - SUPREME COURT

2015 (3) TMI 787 - SUPREME COURT - 2015 (318) E.L.T. 22 (SC), [2015] 79 VST 337 (SC), 2015 (2) SCR 1061, 2015 (7) SCC 102, 2015 (3) SCALE 681 - Classification of goods - "Ujala Supreme" and "Ujala Stiff and Shine" - it is claimed that "Ujala Stiff and Shine" is a liquid form and is covered under primary form - Whether both the items fall under residuary entry 103 of S.R.O. No. 82 of 2006 which provides for rate of tax on items not covered by any of the entries in the list provided in the notific .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax is payable at the rate specified in the said schedule. Tax is payable at the point of sale. As is seen, clause (b) stands deleted. Under Clause (d), goods not falling under Clauses (a) or (c), tax is payable at the rate of 12.5% at the point of sale within the State. The legislature has conferred the power on the Government to notify a list of goods taxable at the rate of 12.5%. Harmonious construction of Clause (a) and (d) clearly demonstrates that in case of notified goods, the rate of ta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

adopted in the Customs Tariff Act, 1975. Where the commodities have been given HSN numbers, the same meaning would be given for classification under the Customs Tariff Act, 1975. The rules accept that for certain entries, HSN numbers are not given. Where commodities are not ascribed any HSN number, they would be interpreted as understood in common or commercial parlance. In case of inconsistency between meaning of a commodity without HSN number and a commodity with HSN number, the commodity wit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment, the residuary Entry, that is, Entry No. 103, is attracted. Needles to say, the residuary entry would apply only when the goods are not covered under any other Entry of the List or any other Entry in the Schedules. To elaborate, the case of the respondent is that two goods under consideration are not covered by any specified Entry in the Schedules as well as in SRO 82/2006 dated 21.01.2006. If the goods in question are covered under any of the Entries in the Schedule, Entry 103, which is th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at would not be material and relevant regard being had to the rules of interpretation which are applicable. The subject matter of the list will not fall under residuary entry 103 in SRO 82/2006 dated 21.01.2006, if the goods in question fall in any entry of any of the schedule. That is what is conveyed by the language employed in Entry No. 103. The said Entry, as we find, does not stipulate or carves out any exception in respect of list "A" to the Third Schedule. That being the position, once go .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y and specifically itemized in SRO number 82/ 2006 dated 21st January 2006. The goods which are specifically mentioned in any of the entries of the said SRO, would be chargeable to tax @ 12.5%. But that is not the lis here, for the Revenue has included the goods in the residuary Entry 103 and the said entry, by no stretch of reasoning, can be made applicable. - High Court, has missed the issue in entirety and, therefore, we are obliged to dislodge the impugned judgment and orders. However, if an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/s. M.P. Agencies, is a registered dealer under the Kerala Value Added Tax Act, 2003 (for brevity, 'the 2003 Act') and is a wholesale distributor for "Ujala Supreme" and "Ujala Stiff and Shine", which are manufactured by M/s. Jyothy Laboratories Ltd. "Ujala Supreme" is a fabric whitener and "Ujala Stiff and Shine" is a liquid fabric stiffener. The product "Ujala Supreme" is described as fabric whitener for supreme whiteness of clothes, an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

quot;Ujala Stiff and Shine" are commercially known as instant whiteners and the consumers who are purchasing the manufactured goods which are subjected to certain processes and are marketed as a commercially different commodity, "instant whitener", in the brand name "Ujala'", which is used as a "laundry whitener" at the end point. After so observing, the Commissioner referred to SRO 82/06 wherein the Government has notified list of commodities coming under .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ommissioner without even adverting to any one of the evidence produced by the assessee, by merely relying upon how the commodity is understood in the commercial circles, has proceeded to observe that the sale of the products by the assessee requires to be taxed at 12.5%. This view of the Commissioner is contrary to sub-section (2) of Section 94 of the Act. The orders passed by the Commissioner under Section 94 of the Act is not only binding on the assessee, but also binding on the assesses who a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to be remitted back to the Commissioner for a fresh decision, keeping in view the observations made by us in the course of the order." 4. After the matter was remitted, the Commissioner considered all the materials furnished by the appellant and heard the matter at length. It was contended by the appellant that the scheme of VAT is materially different from that of KGST principally with respect to classification of goods for the purpose of levy of sales tax based on Harmonized System of Nom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

listed in the Third Schedule with reference to HSN or not and if so listed there would be no scope to interpret the commodity differently relying on common parlance or commercial parlance. The Commissioner took note of the fact that the appellant had purchased the product in question from Jyothy Laboratory that was charging tax at 4% on the products. Thereafter the Commissioner took note of all the contentions of the appellant and referred to the HSN Codes allotted to the commodities, Clause 43 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at 'the unit is not merely repacking' the materials purchased by them and marketing it under their brand name. Admittedly some process, as per the SSI certificate of the unit "a manufacturing process", is carried out before marketing their product, which brings an obvious change in the content and character and use of the products. AVP is basically an organic dye used in textile industry. By virtue of the process undertaken in the unit on the material it undergoes a basic chang .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cter and use of the commodity has been changed and as far as the market is concerned this is a commodity holding distinct identity as a 'fabric whitener'. It may be true that on account of the term 'manufacture' as defined in the CET Act for the purpose of levying 'excise duty' the activities leading to the emergence of the product may not amount to manufacture on microanalysis of the term for the purpose of levying 'excise duty'. But the basic fact remains that t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

As stated above definitions and classifications in CET Act are exclusively for the purpose of levying excise duty. If a commodity comes outside the ambit of a classification made under CET Act, then the interpretation that could be given under KVAT Act would be based on the preamble and definitions under the statue." Thereafter, the Commissioner proceeded to state thus: "The commodity covered under HSN 3204.12.94 is specifically for Acid violets. In view of the above findings 'Uja .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e the commodity 'AVP'. Instead, when a laundry brightener is asked for obviously the dealer would give "Ujala Whitener" as a similar product. So in common parlance and commercial parlance "Ujala Whitener" is known and treated as a 'laundry brightener'. In the Third Schedule there is no other entry for such products and so it cannot be classifiable under the 3rd Schedule. In the case of 'Ujala Stiff & Shine' the raw material used is Poly Vinyl Aceta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

question produced are by itself a commercial commodity capable of being sold or supplied with distinct identities when compared to the raw materials used. In the instant case these requirements are satisfied and so the products in question can no longer be treated as the same product as 'imputed' by virtue of its mere presence in a negligible proportion. As per Section 6(1)(d) goods not covered under clause (a) or (c) are taxable at 12.5% and Government is empowered to notify list of suc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

entioned in the sub entries. By picking out the product 'laundry whitener' and including it specifically in the heading of the said entry, the intention is made specially clear. But since no specific HSN has been assigned to the products in question and the products are not specifically mentioned else where, it has necessarily to go under entry 103 i.e., the residual entry of SRO 82/2007 taxable at 12.5%." 6. In view of the aforesaid analysis, the Commissioner opined the products &q .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cond or Third Schedule of the 2003 Act which attracts tax at the rate provided therein by virtue of Section 6(1)(a) of the 2003 Act. 8. As a proposition of law, the High Court opined, it deserved acceptation, but proceeded to consider whether the two items are covered by the specific entries of the Third Schedule, as contended by the appellant. Be it stated, the High Court proceeded to consider both the items separately, despite their use being similar. 9. Dealing with the "Ujala Supreme&qu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he manufacturer, namely, M/s. Jyothy Laboratories Ltd., was manufacturing the said item by just diluting the acid violet paste with water. Two test reports, one from SGS India Private Ltd. and the other from Institute of Chemical Technology, Matunga, Mumbai were filed before the High Court. The first report shows that on analysis of the product, namely, "Ujala Supreme", the presence of AV49, that is acid violet paste is only less than one per cent and balance 99% is water. The second r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ket are subjected to instrumental analysis HPTLC (High Performance Thin Layer Chromatography) and the results are observed as below: 1. Acid violet 49 is a synthetic organic Dye which can be used by fabric dyeing industry for dyeing silk/wool and other protein fibres. The dyeing of these fabrics takes place under an elevated temperature in presence of acid only. 2. The diluted acid blue/violet dyes are being used in the fabric finishing industries for imparting brightness (bluish/purple tint) to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nder Entry 155(8)(d) and is essentially an industrial input. The High Court referred to the order of Commissioner, wherein he has held that the acid violet paste is purchased by M/s. Jyothy Laboratories Ltd., a SSI unit, engaged in the manufacture of various products, including "Ujala Supreme". While concurring with the view expressed by the Commissioner on the foundation that the finding recorded by him is consistent with the case put forth by the assessee, the High Court observed: &q .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f AVP into Ujala Supreme, which according to the appellant, is extremely diluted form of AVP. However, from the test report, namely, Annexure 9, extracted above, it is clear that AVP is a synthetic organic dye for fabric dyeing and is used for dyeing silk/wool and dyeing of these fabrics can take place at elevated temperature in the presence of acid only. However, the further finding of the Institute is that product sold by the appellant, namely, Ujala Supreme, cannot be used as a dye or a colou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as a dyeing agent, once it is subjected to conversion process by Jyothy Laboratories to Ujala Supreme. In the impugned order, the Commissioner of Commercial Taxes, has also come to the conclusion that irrespective of whether there is manufacture or not for the purpose of deciding on the liability for excise duty, the product sold by the appellant, namely, Ujala Supreme can no longer be identified with the raw material, namely, AVP, from which it is made." 11. The High Court, after so stati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

item should be treated as the original commodity for classification and, therefore, the view expressed by the Commissioner deserved to be accepted. 12. The High Court, as we find, has also separately discussed with regard to "Ujala Stiff and Shine" and opined that it is a laundry item used to impart crispness and shining of clothes and in common parlance is an agent which is a substitute for starch used for giving stiffness to clothes after washing the clothes. The High Court also refe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bserved: "However, appellant does not deny the contents of the product certified by the Laboratory which shows that product is different from raw material and it has a rose fragrance. We do not know on what basis the appellant can contend that an industrial raw material, namely, polymerised vinyl acetate retains its character even after subjecting it to the process, whether it be manufacture or not, leading to production of a different item with different use and purpose." 14. The High .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of items with HSN numbers should be classified as the original items with same HSN number, and when the products made from industrial raw material are commercially different with distinct use and purpose, it cannot be treated as the raw material from which it is made. On the said foundation it ruled that the two items can be classified under the residuary Entry 103 of SRO 82/2006. Being of this view, the High Court dismissed the appeal. 15. We have heard Mr. V. Giri, learned senior counsel, Mr. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

] rupees and every importer or casual trader or agent of a non-resident dealer, or dealer in jewellery of gold, silver and platinum group metals or silver articles or contractor or any State Government, Central Government or Government of any Union Territory or any department thereof or any local authority or any autonomous body whatever be his total turnover for the year, shall be liable to pay tax on his sales or purchases of goods as provided in this Act. The liability to pay tax shall be on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

out in the Appendix." 17. From the aforesaid, it is quite clear that the provision deals with the levy of tax on sale and purchase of goods and provides various facets. It applies to an importer, casual trader, agent of a non-resident dealer, dealer in jewellery or gold, silver & platinum group metals or silver articles or contractor of State Government or the Central Government, etc. regardless of the turnover. Under Clause (a), in respect of the goods specified in the second and Third .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rate of tax would be 12.5%. Similarly, in case of goods not falling under Clause (a), that is Second and Third Schedule, the rate of tax would be 12.5%. It requires to be clarified here that this does not necessarily mean that exempted goods would be taxable by virtue of Clause (d). 18. Sub-Section 8 of 2003 Act provides the Rule of Interpretation of Schedules under the Act. The relevant part of the Rules of Interpretation of the Schedules is reproduced below:- "The commodities in the sched .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in common parlance or commercial parlance. While interpreting a commodity, if any inconsistency is observed between the meaning of a commodity without HSN Number and the meaning of a commodity with HSN Number, the commodity should be interpreted by including it in that entry which is having the HSN Number. HSN Numbers are allotted in the Schedules either in four digits or in six digits or in eight digits. The four digit numbers indicate the heading in the HSN classification, six digit numbers in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

HSN Number shall mean that commodity which bears that HSN Number. iv. As an exception to the above rules, there are certain entries in the Schedules, which bear the eight digit numbers but the four digit heading numbers of such commodities are given for some other commodities mentioned elsewhere. In such cases, the four digit heading shall include only those commodities under that heading excluding that commodity for which the eight digit numbers are given. Similar cases are available in the cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s and Packing Materials' shall attract the rate of tax applicable to Third Schedule regardless to the purpose for which such goods have been purchased." 19. From the aforesaid rule position, it is luculent that the commodities mentioned in the schedules have been allotted code numbers developed by International Customs Organisation, which is known as Harmonised System of Nomenclature (HSN). The same has been adopted in the Customs Tariff Act, 1975. Where the commodities have been given .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which has been given HSN number. Thus, primacy is given to HSN number classification and adoption/interpretation of HSN classification under the Customs Tariff Act, 1975 and any inconsistency or debate would be decided with the commodity being categorized against the HSN number. As is seen, general guidelines have been given on interpretation of four digit, six digit and eight digit HSN numbers. The rules also provided for resolution and conflict between the commodities with four digit, six digi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rose whether mosquito repellants and other items fall under Entry 44(5) of Schedule III of the 2003 Act. The Court referred to the items by enlisting the trade name, name of active ingredient, entry in relevant statutes i.e. Insecticides Act, 1968 and Drugs and Cosmetics Act, 1940 and the Licensing Authority in respect of the products, namely, Mortein coil, Mortein mats, Mortein vaporizers, Mortein Instant Cockroach Killer, Mortein Instant Flying Insect Killer, Mortein Instant All Insect Killer, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er the enlisted items falls under Entry 44(5) read with Section 6(1)(a) of the 2003 Act. It was contended by the appellant that the items fell under Entry 44(5) which, at the relevant time, attracted duty at the rate of 4% whereas the stand of the Department was that the said items came under Section 6(1)(d) read with Notification No. 82/2006, Entry No. 66, which attracted the rate of duty at 12.5%. After recording the stand of the parties, the Court held: "We have examined the impugned jud .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

judgments applicable to the corresponding entries in the Customs Tariff Act." 21. Expressing the aforesaid view, the Court set aside the judgment of the High Court and remitted the matter to the High Court for fresh consideration in accordance with law. The said decision, as we understand, makes it clear that Rules of Interpretation has its own signification and one is required to go by the provision of HSN, as adopted by the Customs Tariff Act, 1975 and one has to interpret the Third Sche .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Tariff Act, 1985, which indicates the pattern of the structure of the Central Excise Tariff indicated therein. The Court reproduced the Objects and Reasons of the 1985 Act. We think it apt to reproduce the relevant part of the same as follows: "The Technical Study Group on Central Excise Tariff, which was set up by the Government in 1984 to conduct a comprehensive inquiry into the structure of the central excise tariff has suggested the adoption of a detailed central excise tariff based bro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

enclature, in the formulation of which all considerations, technical and legal, have been taken into account. It should, therefore, reduce disputes on account of tariff classification. Besides, since the tariff would be on the lines of the Harmonised System, it would bring about considerable alignment between the customs and central excise tariffs and thus facilitate charging of additional customs duty on imports equivalent to excise duty. Accordingly, it is proposed to specify the Central Excis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on account of tariff classification". Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the HSN. This being the expressly acknowledged basis of the structure of Central Excise Tariff in the Act and the tariff classification made therein, in case of any doubt the HSN is a safe guide for ascertaining the true meaning of any expression used in the Act. The ISI Glossary of Terms has a different purp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, it is worth reproducing what has been stated by a three-Judge Bench in O.K. Play (India) Ltd. v. Commissioner of Central Excise, Delhi III, Gurgaon (2005) 2 SCC 460 : "Further, the scheme of the Central Excise Tariff is based on Harmonised System of Nomenclature (for short "HSN") and the explanatory notes thereto. Therefore, HSN along with the explanatory notes provides a safe guide for interpretation of an entry." 25. In the instant case, the respondents have not invoked a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

6. If the goods in question are covered under any of the Entries in the Schedule, Entry 103, which is the residuary Entry, would not get attracted. In such cases, the tax rate as stipulated in the Schedule, applicable to the Entries would be applicable. 26. Keeping the aforesaid principles in view, we are required to understand the Schedule and the relevant Entries therein. Prior to that we would like to refer to the findings recorded with regard to the category or classification under HSN Code .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Central Excise Authorities who have been administering the classification based on HSN for the few decades. It has been brought to our notice that the Excise Department has raised a demand of central excise duty in respect of the goods of the appellant by proposing to classify the product as a preparation based on synthetic organic colouring matter and the said issue was decided by the Central Excise, Customs & Gold (Control) Appellate Tribunal in Jyoti Laboratories v. CCE, Cochin 1994 (72) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mp; Anr. v. CCE, Calicut (2007) (78) RLT 276, CESTAT Bangalore, wherein it has been ruled that the dilution undertaken by the company does not result in the emergence of new product and that the diluted product in question would continue to be classifiable under Chapter Heading 3204.12.94. The said decision of the Tribunal has also gone unassailed and has been accepted by the authorities all over the country. 28. It is an admitted fact that Jyothy Laboratories purchases central excise duty paid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

umbai which has stated that the chemical composition of AVP and Ujala are the same except for the dilution in Ujala. The relevant part of the said report reads as follows: "The Acid Violet Paste (referred as "AVP" hereafter) supplied to us confirms to Acid Violet 49, a synthetic organic dye classified into acid dye class which is used for the colouration of silk / wool at elevated temperatures in the presence of acid. "AVP" is uniform and having standard strength which i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

jala" cannot be used as a dye or a colouring matter as it is. 4. From the technical literature it can be understood that diluted acid violet 49 is used in the fabric finishing industries for imparting brightness to white fabrics. (The mechanism being the fabric absorbs all the colours in the visible light and transmits the bluish / purplish tint) As per technical report and the HPTLC report, it can be conclusively said that Ujala is nothing but a diluted form of Acid Violet Dye. The observa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of Acid Violet 49 with water, which has the inherent characteristics of brightening clothes and does not contain any other additives or optical brightening agents. The brightness of the fabric is increased because it absorbs all the colours in the visible light and transmits the bluish / purplish tint, thus hiding the yellowing of the fabrics." 29. Referring to the said report, it is submitted that when the 2003 Act has classified AVP under Entry 155(8)(d) and has classified it as equivale .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce has been placed on a Test Certificate of GEO CHEM Laboratories P. Ltd., Mumbai which states that "Ujala Stiff and Shine" is PVA. A similar test certificate from Shriram Institute for Industrial Research has also been brought on record. The said Institute has tested samples collected from open market in Kerala and from the Kerala sales depot of Jyothy Laboratories Ltd. and the test report has certified that the product to be containing solid and water content of 43.87% and 55.78% re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt to the PVA and, therefore, the rose fragrance is inherent in the PVA purchased by it. 30. At this stage, it is pertinent to note that Chapter Heading 3905 of HSN reads "Polymers of Vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms". Chapter Note 6 of Chapter 39 of HSN/Customs Tariff/Excise Tariff states that "the expression 'primary forms' applies only to: "(a) Liquids and pastes, including dispersions (emulsions and su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

: 3905 12 - In aqueous dispersion: 3905 12 10 - Poly (vinyl acetate) (PVA), moulding material 3905 12 20 - Poly (vinyl acetate) resins 3905 12 90 - Other" 32. A comparison has been made between the said tariff and Entry 118(5) of List A of the Third Schedule of the 2003 Act which is as follows: "Polymers of vinyl acetate or of other vinyl esters, in primary forms, other vinyl polymers in primary forms and gives the HSN code as 3905." 33. We have referred to the same as the learned .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

STAT that there is no chemical change brought about in a process and if the product at the starting and the terminal points of the process remains the same, the activity would not amount to manufacture, as the essential character of product remains constant. 34. In this regard, we may refer with profit to a two-Judge Bench decision in Commissioner of C.Ex., Cochin v. Mannampalakkal Rubber Latex Works 2007 (217) ELT 161 (SC). In the said case, the assessee was engaged in the manufacture of Latex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eference to enzymes, modified starches: glue and albuminoidal substances, whereas tariff heading 40.01 falls under Chapter 40 which refers to 'rubber and articles thereof'. The tribunal referred to Note 5(b) of Chapter 40 and eventually held thus: "Reading Note 5(b), it becomes clear that the test to distinguish rubber based adhesives and non-rubber based adhesives or other adhesives is the test of composition and not the test of end-user. Generally, in matters of classification &qu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nufactured by the assessee falls under heading 40.01 and not under heading 35.06." 35. Learned counsel for the appellant has drawn inspiration from the said decision to show that the case at hand, the composition test is the important one and not the end-user test. Be it stated, Note 5(b) provided about rubber or mixture of rubber retaining its essential character as a raw material. Learned counsel for the appellant has placed reliance on Jyoti Laboratories (supra), wherein the issue was th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fied. The factory is getting the Acid Violet and Fluorescent Whitening agent from Bombay. The fluorescent whitening agent is nothing but Ranipal as per the packing list on the tin. Factory is making the Ujala by simply mixing these three items, Acid violet, ultra marine blue, fluorescent whitening agent in water heating them to a particular temperature and then filter this solution and bottling them in small packings and packing them in paper cartons for marketing, as such, there is no machinery .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e in the liquid Acid violet dye and there is no new product emerging from such a process." 36. Be it noted, this view expressed by one of the member was differed with another member, but the third member, relying on the report of the Chemical Examiner, who has stated that Ujala is made simply by mixing acid violet, Ranipal and ultramarine blue in water heating them to a particular temperature and filtering this solution and bottling in small packing and packing them in paper cartons for mar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d or unprepared form into their formulated, standardized or prepared forms ready for use in the process of dyeing. When this is so, it cannot be held that there is a process of manufacture in the production of 'Ujala'. The chemical examiner's report is to the effect that it is a physical mixture of the ingredients in boiling water which report has been given after study of the manufacturing process." [Emphasis added] 37. It is apt to note here that the majority opined that the C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is clear as crystal that two goods/products have been held to be covered under the HSN Code 3905, and HSN Code 3204.12.94 and hence, there can be no shadow of doubt that the said entries fall under entry numbers 155(8)(d) and 118(5) of the list "A" of Third Schedule of the 2003 Act covering industrial inputs and packaging materials, but that would not be material and relevant regard being had to the rules of interpretation which are applicable. The subject matter of the list will not f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version