TMI Blog2024 (3) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... out applying its mind to the objections made. It is trite law that when objections are raised a duty is cast on the assessing authority to apply its mind to the objections and deal with each one of them. Failure to do so would vitiate the order of assessment on the ground of non-application of mind. Secondly, the impugned orders of assessment for the first time reveals that the entire proposal have been made on the basis of the proposal received from the enforcement wing authorities. Since, it is only in the impugned order of assessment it was disclosed for the first time about the fact that proposal had been received from the enforcement wing authorities, the petitioner's was disabled from submitting their objections on the above aspect. The impugned order of assessment suffers from the vice of non-application of mind to the objection and also non-disclosure of the fact the proposal have been received from the enforcement wing thereby the impugned order of assessment stands vitiated - the impugned order of assessment is set aside - Petition disposed off. - Honourable Mr.Justice Mohammed Shaffiq For the Petitioner : Mr. Jawahar Lal for Mr. R.Saravana Kumar For the Respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etail sale, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent 31 3402 Organic surface-active agents (other than soap); surfaceactive preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 3401. The tax payers had been adopted 18% tax rate by using the following HSN code as under (Up to 13-11-2017) Item No.87 of Third Schedule vide HSN Code 38089400 INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING No 87 of PRODUCTS AND PLANT GROWTH REGULATORS, DISINFECTANTS AND SIMILAR Third PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS Schedule PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS)-DISINFECTANTS. But following goods sold by you in the course of inter and intra state supply not falls under the above HSN code and following item No.29 to 31 of Fourth schedule of Tamil Nadu Goods and Service Tax Act. 2017. 4. The petitioner after seeking time submitted a detailed objection vide its letter dated 27.06.2020 running to 18 pages wherein i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting Harpic and Lizol as falling under Entry 31 of the Fourth Schedule vide HSM Code:3402 which reads as under: Item No.31 of Fourth Schedule vide HSN Code 3402 Organic surface-active agents (other then soap); surface active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparation, whether or not containing soap, other than those of heading 3401 7. Importantly, the impugned order of assessment states that the proposal has been received from the State Tax Enforcement which was not indicated / disclosed in the show cause notice. The impugned order of assessment places reliance primarily on the ingredients used in Harpic and Lizol to reject the classification made by the petitioner while confirming its proposal to treat Harpic and Lizol as falling under Entry 31 of the Fourth Schedule liable to tax at 14% under TNGST. The relevant portion of the impugned order is extracted hereunder : The reply filed by the taxpayer is stated as below: The taxpayer replied that, since GST act 2017 came into force the company has been classifying harpic and lizol under item no 87 of Third schedule relatable to HSN code 38089400 subject to 18% by classifying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d other chemical products. Here the chemical Benzalkonium Chloride solution which contains 95% of ethanol/ethyl alcohol. The main usage of ethyl alcohol is it act as a solvent for oil, resins, fat etc. It solubilizes the oil and thus removes grease, stains etc Fatty alcohol ethoxylate which is used as surfactant. The term surfactants mean surface active agents widely used for cleaning purpose. It reduces the surface tension of cleaning solution thus helps it to have easier flowing property. Sodium bicarbonate which is a salt when dissolves in water breakdown as sodium and bicarbonate which neutralizes the acid. Hence it is used to remove grease and stains etc. EDTA tetrasodium which is a chelating agent. Chelating agent neutralizes metal ions in hard and converts it into soft water. Hard water is not suitable for cleaning. Hence it is used to convert hard water to soft water for better cleaning purpose and allows surfactants to react over it. Other than the above main ingredients some fragrant and other perfumed products and chemicals are used. From the above discussion it is cleared that the use of main active ingredients of Lizol is surface cleaning products not falls under disin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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