2009 (1) TMI 819 - HC - VAT and Sales Tax

Summary

Issues: Classification of hair dye as a cosmetic under entry 127 of the Kerala General Sales Tax Act, 1963.

In this judgment, the State filed a revision against the Tribunal's order rejecting its claim that hair dye is a cosmetic taxable at 20 per cent under entry 127 of the First Schedule to the Kerala General Sales Tax Act. The court noted that there is no specific entry covering hair dye in the Act but entry 127 includes perfumes and cosmetics not mentioned elsewhere. The court observed that the Tribunal relied on a decision of the Andhra Pradesh High Court but pointed out the distinction in the Kerala Act where entry 127 covers all perfumes and cosmetics not specifically listed in other entries. The court interpreted the dictionary meaning of "cosmetic" as items intended to adorn or beautify the body, especially the face, or to improve appearance superficially. It concluded that hair dye, used to restore the original color of graying hair, falls under this definition as it aims to enhance appearance. Therefore, the court allowed the tax revision case, overturning the Tribunal's decision and confirming that hair dye is a cosmetic taxable at 20 per cent under entry 127 of the KGST Act.