2017 (4) TMI 1594 - HC - VAT and Sales Tax

Valuation of Toffees - whether sugar content in the candies is 90% or not? - HELD THAT - As against 05 samples initially sent for chemical analysis in four of them sugar content was found around 90%. Upon objection of the assessee fifth sample also has reported sugar content of 90% in re-analysis. The manufacturing of candies was otherwise not discontinued. In such circumstances if the Tribunal has proceeded to treat the sugar content at 90% for the fifth sample also no perversity could be shown. This Court in exercise of revisional jurisdiction is not required to re-appraise facts. Revision disposed off.

Summary

Issues:
1. Validity of Tribunal's order directing fresh chemical analysis of candies.
2. Dispute regarding the sugar content in the candies.
3. Assertion of the revenue that production of candies stopped in 2012.

Analysis:
1. The High Court addressed the validity of the Tribunal's order directing a fresh chemical analysis of candies. The Court noted that pursuant to an earlier order, a chemical analysis was conducted on samples of toffees, candies, and lollipops. While four samples showed a sugar content of 90%, the fifth sample initially indicated 54.20% sugar content. However, upon a prayer for fresh analysis by the assessee, the fifth sample was also found to contain 90% sugar. The Tribunal proceeded to assess the respondent firm based on this analysis, leading to the revenue's appeal. The Court considered arguments from both sides, with the revenue contending that as candies were not manufactured after 2012, no fresh sample was available, rendering the Tribunal's order invalid. On the other hand, the respondent's counsel highlighted that the Tribunal's directive for fresh analysis had been finalized.

2. The dispute primarily revolved around the sugar content in the candies, with the revenue asserting that candy production ceased in 2012, and no fresh samples were accessible. In contrast, the assessee's counsel argued that while the assessee stopped selling candies, production had not halted, and the candies were still available in the market. The Court observed that out of the five samples analyzed, four indicated a sugar content of around 90%. Even upon re-analysis of the fifth sample at the assessee's request, the sugar content remained at 90%. Given that candy production had not been discontinued, the Tribunal's decision to consider the sugar content at 90% for all samples, including the fifth one, was deemed appropriate. The Court emphasized that in its revisional jurisdiction, it was not required to reassess factual findings, leading to the revision being dismissed and consigned to records.