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2019 (10) TMI 950 - HC - VAT / Sales TaxClassification of goods - Parachute Oil - Medikar - Revived Instant Starch - HELD THAT - The issue decided in the case of M/s. Merico Ltd. vs. Commissioner, Commercial Taxes, U.P., Lucknow and other connected matters 2015 (3) TMI 431 - ALLAHABAD HIGH COURT where it was held that, ..... word Starch as used in Entry 118 of Schedule II Part A of the U.P. VAT Act, 2008 has neither been referred to as edible or inedible and therefore Revive Starch must be held to be falling within the meaning of word Starch as used in Entry 118. If it had been the intention of the Legislature to distinguish between edible and inedible Starch, the Entry 118 itself would have explicitly said so and therefore when the Legislature itself is silent a meaning or interpretation to a word used in the statute must not be given which the Legislature itself did not intend and did not say in so many words. The revision dismissed.
Issues Involved:
1. Classification of 'Parachute Coconut Oil'. 2. Classification of 'Medikar'. 3. Classification of 'Revive Instant Starch'. Issue-wise Detailed Analysis: 1. Classification of 'Parachute Coconut Oil': The primary issue was whether 'Parachute Coconut Oil' should be classified under 'oil of all kinds' or as 'hair oil'. The Tribunal had previously ruled that 'Parachute Coconut Oil' falls within the category of 'oil of all kinds'. However, this was contested based on a previous ruling in the case of M/s The Bombay Oil Industries (P) Limited vs. The Commissioner of Trade Tax, Uttar Pradesh, where it was held that 'Parachute Coconut Oil' should be taxed as 'hair oil' and not under 'oils of all kinds'. The court reiterated this position, referencing the judgment dated 12.09.2014 in the case of M/s. Merico Ltd. vs. Commissioner, Commercial Taxes, U.P., Lucknow, which stated that 'Parachute pure coconut oil' marked as "edible" should be classified as edible oil under Entry no. 43 of Schedule II Part A of the U.P. VAT Act, 2008, and taxed at 4%, not as an unclassified item taxable at 12.5%. 2. Classification of 'Medikar': The issue was whether 'Medikar' should be classified as a medicine or a shampoo. The Tribunal had classified 'Medikar' as a medicine. This classification was supported by the Hon'ble Apex Court in its judgment dated 22.07.2015 in Civil Appeal No. 8656 of 2015, which held that 'Medikar' is used for anti-lice treatment and is a drug due to its medicinal effect, thus it cannot be classified as a shampoo. The court cited previous judgments and detailed the composition and usage instructions of 'Medikar', concluding that it is a medicament and not a shampoo, thereby exempting it from the liability of entry tax. 3. Classification of 'Revive Instant Starch': The issue was whether 'Revive Instant Starch' should be classified under 'starch' or as an unclassified item. The Tribunal had held that 'Revive Instant Starch' falls under the category of 'starch'. The court noted that 'Revive Instant Starch' contains 97% tapioca starch, which is edible, and a negligible 3% of other chemicals. It was argued that Entry 118 of Schedule II, Part A of the U.P. VAT Act, which mentions 'starch', does not differentiate between edible and non-edible starch. The court referenced the Supreme Court's judgment in Alladi Venkateshwarlu vs. Government of Andhra Pradesh, which held that the term 'rice' includes both edible and inedible forms. Similarly, the court concluded that 'starch' in Entry 118 includes both edible and inedible forms, and thus 'Revive Instant Starch' should be classified as 'starch' and taxed at 4%. Conclusion: The court concluded that the issues in question had already been settled by previous judgments of the High Court and the Hon'ble Apex Court. The classification of 'Parachute Coconut Oil' as 'hair oil', 'Medikar' as a medicine, and 'Revive Instant Starch' as 'starch' were upheld. The revision was dismissed, affirming the Tribunal's classifications and the applicable tax rates as previously determined.
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