TMI Blog2022 (11) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... ble rate of 15%. HELD THAT:- The entry wherein the Revenue wants to charge the goods in question is Air Conditioner and Refrigerator , wherein applicable rate of tax is 15%. The respondent-assesse has self classified the said goods in Schedule V of RVAT Act, under the residuary head, wherein the applicable rate of tax is 14%. The Appellate Authority and the Tax Board after considering two important aspects; firstly that Deep Freezers and Refrigerators are two different products having different construction style, different cooling temperature range, different power supply, different inner liner, different outer cabinet material and having different utilities held that the two goods are different in nature and utility. Secondly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2021, 2/2021 - - - Dated:- 30-11-2022 - Hon'ble Mr. Justice Sameer Jain For the Petitioner : Mr. Punit Singhvi, Adv. for Mr. Ayush Singh, Adv., Mr. Akshay Singh, Adv., Mr. Swapnil S. Sharma, Adv. For the Respondent : Mr. Vivek Singhal, Adv. ORDER 1. By way of present revision petitions, the question of law which is to be determined is whether in the facts and circumstances of the case, Deep Freezers will not fall in specific entry of Air Conditioners and Refrigerator and will fall in general entry as held by the Rajasthan Tax Board . 2. With consent of the parties, matter is taken up for final hearing. As common issue is involved in all these revisions, they were taken up together and are now being adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors and be taxed at the applicable rate of 15%. It is contended that the assesse, with the intention to evade and avoid paying proper tax, wrongly classified Deep Freezer in the residuary heading and paid tax at the rate of only 14%. In support of his contentions, learned counsel submits that the Harmonized System Nomenclature ( HSN ), which is prepared by experts and accepted worldwide, also includes Refrigerator, Deep Freezers and other freezing equipment under the broad entry of Heading No. 84.18. Learned counsel further submits that as per settled position of law, as held by Hon ble Supreme Court in Commissioner of Commercial Tax, U.P. vs. A.R. Thermosets (Pvt.) Ltd. : (2016) 16 SCC 122 and Mauri Yeast India Pvt. Ltd. vs. State of U.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c exclusion in the entry goes to show that the legislation consciously did not include Deep Freezer in the entry of Air Conditioner and Refrigerator . Learned counsel further submits that even if common parlance test or end user test is applied, deep freezer being a commercial/industrial item specifically designed for its unique purpose of freezing, rather than cooling, cannot be equated with Refrigerators. Furthermore, as per settled position of law, when two views are possible while interpreting a tax statute, the interpretation that is favourable to the assesse has to be adopted. Learned counsel further submit that the classification under the residuary entry was adopted by the assesse under the self-assessment system based on sound leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor, as was also submitted by the learned counsel for the respondent-assesse. The Appellate Authority and the Tax Board, after considering the said factors, held that the goods in question would not be included in the entry of Air Conditioner and Refrigerator . They have given reasons why Deep Freezer is a distinct and different product. They have relied upon the Notifications dated 24.03.2005, 08.03.2006 and 09.03.2011, which are authored by Revenue themselves and the reasoning adopted by the Appellate Authority as well as by the Tax Board, in my opinion, is flawless. 8. In view of the above, on account of the reason that Deep Freezer are distinct product not covered under Air Conditioner and Refrigerator and that the notification da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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