2022 (8) TMI 101 - HC - VAT and Sales Tax

Classification of goods - rate of tax - laminated, insulated and toughened glass - whether liable to tax @ 10% as glass and not @ 16% as all the goods made of glasses? - HELD THAT - With respect to laminated glass, there can be no dispute that the assessing authority had taxed both laminated as also insulated glass manufactured by the assessee @ 16% treating those commodities to be covered by the Notification entry All goods and wares made of glass under Notification No. 1273 dated 25.4.2001. Against that assessment order, the assessee had preferred first appeal that came to be partly allowed vide order dated 28.2.2006. The commodity laminated glass was held to be excluded from the above noted notification entry. Accordingly, it was taxed @10% as an unclassified commodity. That decision of the first appeal authority attained finality inasmuch as the revenue never challenged the same. There is no discussion in respect of any commodity that may be known as toughened glass. Insofar as the present taxing entry is concerned, similar language has been employed by the legislature as was employed by earlier Notification dated 20.5.1976. Therefore, the interpretation made by this Court in M/s Hindustan Safety Glass Works, Allahabad 1998 (8) TMI 546 - ALLAHABAD HIGH COURT would apply to the facts of the present case as well. It may be noted, under Notification No. 1273 dated 25.4.2001 only difference that has arisen is with respect to earlier existing notification entry 'hurricane lantern chimneys'. It has been replaced with 'all kinds of chimneys'. However with respect to exclusion of plain glass-panes from the scope of taxing entry pertaining to all goods and wares made of glass, there is no change. Nothing contrary has been shown as may allow the Court to take a different view other than expressed in M/s Hindustan Safety Glass Works, Allahabad - Revision dismissed.

Summary

Issues:
Taxability of insulated glass under Notification No. 1273 dated 25.4.2001.

Analysis:
The High Court heard a revision filed by the revenue against the Trade Tax Tribunal's order regarding the taxability of insulated glass. The Tribunal had held that insulated glass falls under the general description of 'plain glass-panes' and is taxable as an unclassified commodity at 10%. The main question raised was whether the Tribunal was justified in taxing insulated glass at 10% instead of 16% as all goods made of glass.

The Court clarified that the dispute was limited to insulated/toughened glass as the assessment order had already excluded laminated glass from the higher tax rate. The issue of toughened glass did not arise in this case. The only issue for consideration was the taxability of insulated glass.

Referring to a previous case regarding the taxability of glass screens, the Court highlighted that items like plain glass-panes were excluded from the scope of taxing entries. The current taxing entry employed similar language to the previous notification, indicating that insulated glass could be considered akin to plain glass-panes and thus excluded from the higher tax rate.

The Tribunal extensively discussed the manufacturing process of insulated glass and concluded that it was essentially double glazed dual sheet (DGDS), which was akin to plain glass-panes. Citing a previous order, the Tribunal reaffirmed that DGDS was similar to plain glass-panes. No evidence was presented to warrant a different interpretation from the precedent set in the previous case.

Ultimately, the Court found no merit in the revision and dismissed it, upholding the Tribunal's decision to tax insulated glass as an unclassified commodity at 10%.