TMI Blog2018 (10) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... ous error 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tities 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, hands and legs. According to the petitioners, therefore, the product would fall within description of Entry 34 of Schedule I to the VAT Act pertaining to Henna powder/Mehendi which invites no duty. Petitioners also pointed out that for years together, the VAT authorities accepted petitioners classification of the product under the said entry under the VAT Act, and previously under the corresponding entry under the Sales Tax Act. However, for the year 20132014, the Department suddenly took a different stand. After carrying out the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 focus was on the use of the product as Henna to be applied on hands and feet. The Assessing Officer has recorded that the product comes in four different colours; is used predominantly on hair and it is more in the nature of hairdye or hairtonic. Facts are not in dispute. Relevant facts can be summarized Thus- The petitioners since long manufacture a product which is marked as Godrej Nupur Mehendi, Since years, the petitioners would classify the product under Entry 34 of ScheduleI to the VAT Act. In the year 2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 have held that in so far as assessee is concerned, the said order can bind only the parties before the Commissioner. In other words, in relation to the same product, if some other dealer or manufacturer wishes to dispute the classification, the Department cannot cite the determination order in case of some other assessee. However, unless the Department has questioned the order of determination passed by the Commissioner, it would bind the Department in relation to other assesses also. Division Bench of the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 determine the dispute is conferred upon the Commissioner or any of his authorized representatives. Such an order would be binding between the parties and if any of the parties are aggrieved by the order, then it has to challenge the said order before the appellate forum. Undisputedly, the above referred two orders still stre in the eyes of the Department. It is to be noted that the said orders have yet not been challenged by the Department before any Appellate forum. Under the circumstances, the orders w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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