2007 (1) TMI 508 - HC - VAT and Sales Tax

Summary

Issues:
Rate of tax clarification for specific commodities under Kerala Value Added Tax Act, 2003.

Analysis:
The appellant, a registered dealer, sought clarification on the rate of tax for certain commodities under the Kerala Value Added Tax Act, 2003. The clarification was issued by the Commissioner for Commercial Taxes, leading to an appeal by the dealer. The primary issue to be decided was the applicable tax rate for items listed in annexure I.

Regarding roasted coconut paste (item 1(a)), it was determined that it falls outside the HSN Code Number 0801.19.90 and is subject to a tax rate of 12.5%. Items like ginger paste, garlic paste, ginger garlic paste, and tamarind paste (items 1(b) to 1(e)) were confirmed to attract a tax rate of four per cent under specific entries.

The clarification issued by the Commissioner regarding curry mixes (item 2) was contested. The appellant argued that these items should be taxed at 12.5% based on the HSN Code Number 2103.90.10. However, it was determined that the correct tax rate is 12.5% as per the Act.

For items like easy palappam mix, palappam mix, and vattayappam podi (items 3, 5, and 6), the appellant claimed they fall under entry 86 of the Third Schedule, attracting a tax rate of four per cent. The judgment upheld this claim, applying the definition of cereals to include rice.

Banana powder (item 4) was found to fall under a specific sub-entry, warranting a tax rate of four per cent. Crunch flakes (item 7) did not fit any specified entry and was taxed at 12.5%.

Regarding instant idiyappam (item 12), ragi vita (item 14), and puttu mix (item 15), the judgment clarified that these items should be taxed at 12.5% under the Act, rejecting the appellant's claims based on specific entries.

In conclusion, the appeal was partly allowed, determining the tax rates for specific items in annexure I. Items 1(b), 1(c), 1(d), 1(e), and items 3, 4, 5, and 6 were confirmed to be taxed at four per cent.