9911796707
TMI Blog2018 (10) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... the residuary entry 87 of Schedule II to the Gujarat Value Added Tax Act, 2003 ["the VAT Act" for short] instead of accepting the petitioners' contention that the same should be classified as "Heena Powder {Mehandi}" which would be covered under Entry 34 of of ScheduleI to the VAT Act. The petition arises in the following background. The petitioners are engaged in manufacturing and selling of various products; including Godrej Nupur Mehendi, which according to the petitioners is predominantly "Mehendi" powder mixed with small quantities of other ingredients to enhance its function as mehendi. Majority of these ingredients are natural products like amla, jaswant, bringraj, etc. The popular use of these products are application on hair, hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the petitioners submitted that the Department cannot ignore decision of the Commissioner in such determination order; more so when the Department had not disputed such determination either by filing appeal or taking the order in revision. He further submitted that there cannot be two different classifications of the same product in the hands of manufacturer visavis the distributors. In this context, counsel relied on certain decisions, to which reference would be made later. Learned AGP on the other hand opposed the petition contending that the determination order was not passed in case of these petitioners. The Assessing Officer has recorded proper reasons to distinguish such order. He noted that in the determination order, the foc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in discarding the determination order passed by the Commissioner. Section 80 of the VAT Act pertains to determination of disputed questions. Subsection [1] of Section 80 authorizes the Commissioner to pass an order determining the question inter alia as to whether any tax is payable in respect of any particular sale or purchase or if tax is payable, the rate thereof. Once such a determination order is passed by the Commissioner, it would bind the parties before the Commissioner, which would include the assessee who might have urged the Commissioner to make the determination and necessarily the Department; unless of course either side has chosen to dispute such order in terms of appeal or revision provisions made under the Act. The Courts ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Sales Tax Act, 1969 which was a provision similar to Section 80 of the VAT Act, held and observed as under : "Section 62 of the Gujarat Sales Tax Act, 1969 relates to determination of disputed questions. For our purpose, Clause [e] of subsection [1] of Section 62 would be material which reads as under : "62. Determination of disputed questions [1] If any question arises, otherwise than in proceedings before a Court, or proceedings under Section 41 or 44, whether for the purposes of this Act, any tax is payable in respect of any particular [sale, specified sale or purcahse], or if tax is payable the rate thereof, the Commissioner shall make an order determining such question." Under the Act, the final authority to determin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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