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2017 (6) TMI 1264 - AAR - VAT and Sales TaxRate of tax on case of product - PVC Rigid film - MVAT Act 2002 - whether impugned products are covered by the industrial input notification issued for Schedule entry C-54 or otherwise? - Held that - The Note-3 appended to notification states that if the description in the notification matches fully with the corresponding description in the Central Excise Tariff then all the commodities covered by the tariff will be covered by the scope of the notification. The notification includes the CETH NO.3920 and said entry No. 202 is classified for the subheadings to restrict the products - The impugned products are PVC Rigid film/sheet made up of polymers of vinyl chloride. We are of the opinion that the product will fall under the CETH No. 3920 49 00 and thus covered by Notification entry 202. Ruling - PVC Rigid Plain Film PVC Rigid Coated Film and PVC Rigid Laminated Film covered by Schedule Entry C-54.
Issues: Determination of rate of tax on sale of PVC Rigid film - Whether products are covered by industrial input notification under Schedule Entry C-54
Issue 1: Determination of rate of tax on sale of PVC Rigid film The applicant, a manufacturer of PVC Rigid films, sought a determination of the rate of tax on the sale of products including PVC Rigid Plain Film, PVC Rigid Coated Film, and PVC Rigid Laminated Film under section 55 of MVAT ACT, 2002. The dispute arose due to an assessment order by the assessing authority, claiming that after coating, the film exceeded 250 microns in thickness, no longer qualifying as film. The applicant provided technical data, manufacturing process details, and expert opinions supporting the classification of the products as PVC film. The applicant argued for classification under CETH NO 3920 based on various legal precedents. Issue 2: Whether products are covered by industrial input notification under Schedule Entry C-54 The analysis focused on the statutory provisions under the MVAT Act, 2002 and the relevant schedule entry C-54. The Schedule entry C-54 referred to industrial inputs and packing materials as notified by the State Government. The notification specified goods falling under the Central Excise Tariff Act, 1985, including plates, sheets, film, foil, and strip of plastics. The notification's Note-3 clarified that products matching the Central Excise Tariff description would be covered. It was concluded that the impugned PVC Rigid film/sheets made of vinyl chloride polymers fell under CETH No. 3920 49 00, thus covered by Notification entry 202. The judgment held that the PVC Rigid Plain Film, PVC Rigid Coated Film, and PVC Rigid Laminated Film were covered by Schedule Entry C-54. The decision invited the applicant to file an appeal before the MSTT, Mumbai if aggrieved by the ruling within the prescribed thirty days.
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