9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (10) TMI 1447 - HC - GSTClassification of goods - rate of tax - Sodium Bicarbonate (Soda Ash) and Magnesium Sulphate (Epsom Salt) - HELD THAT - This G.O. directs a levy of sale tax @8% on all chemicals which are not covered under Entry-9 which is headed as dyes and chemicals. A perusal of Entry-9 would show that the goods mentioned above are not enumerated in Entry-9. In a similar situation, a Division Bench of erstwhile High Court of Judicature, Andhra Pradesh at Hyderabad while dealing with the product Sodium Hydro Sulphite had, in the Judgment in W.P.No.87 of 2007, held that any chemical which is not enumerated in Entry-9 of VI Schedule would fall within the ambit of G.O.Ms.No.189, dated 07.02.2005 and would be taxable @8% only. In view of the above Judgment, it would have to be held that all the goods in question would have to be taxed only @8% as they are chemicals and the usage of these chemicals as raw materials would not detract from the categorisation of these goods as chemicals. The Revision Orders of the Joint Commissioner (CT) (Legal), Office of the Commissioner of Commercial Taxes, A.P, Hyderabad dated 22.08.2008 set aside - petition allowed.
Issues:
Interpretation of tax rates under the Andhra Pradesh Goods and Services Tax Act, 2017 for specific goods - Sodium Bicarbonate and Magnesium Sulphate. Detailed Analysis: The judgment by the High Court of Andhra Pradesh addressed the issue of tax rates applicable to dealers of Sodium Bicarbonate and Magnesium Sulphate under the Andhra Pradesh Goods and Services Tax Act, 2017. The petitioners had claimed a tax rate of 8% based on G.O.Ms.No.189, dated 07.02.2005. The Assessing Officer partly accepted this contention but taxed some goods at 12% as they were deemed not covered under the mentioned government order. The Appellate Deputy Commissioner later accepted the petitioners' contentions, leading to revised Assessment Orders by the Assessing Officers. However, the Revisional Authority subsequently directed a tax rate of 12% on these goods, prompting the petitioners to file Writ Petitions challenging these revision orders (para 3-6). The key argument presented by the petitioners was that the goods in question should be classified as chemicals, even if used as raw materials for other goods. They contended that the nature of the goods does not change merely due to their use in manufacturing and should still be considered chemicals eligible for the 8% tax rate. Reference was made to a previous judgment of the High Court of Judicature, Andhra Pradesh, supporting this interpretation (para 7). Conversely, the Government Pleader for Commercial Tax argued that the goods should be treated as raw materials based on the purpose for which they were purchased, rather than solely by their chemical names. The Revisional Authority's decision was defended as logical, with the goods being categorized as raw materials and not chemicals, justifying the 12% tax rate (para 8). The court examined G.O.Ms.No.189, dated 07.02.2005, which directed an 8% tax on all chemicals not covered under specific entries, including Entry-9 related to dyes and chemicals. A Division Bench's earlier judgment clarified that chemicals not listed in Entry-9 would fall under this government order and be taxable at 8%. Consequently, the court held that the goods in question, Sodium Bicarbonate and Magnesium Sulphate, should be taxed at 8% as they were chemicals, irrespective of their use as raw materials (para 9-11). In conclusion, the High Court allowed the Writ Petitions, setting aside the Revision Orders that imposed a 12% tax rate on the goods. The court held that the goods were correctly classified as chemicals and should be taxed at 8%, in line with G.O.Ms.No.189, dated 07.02.2005. No costs were awarded, and pending petitions were closed as a result of this judgment (para 12).
|
