2022 (11) TMI 999 - SCH - VAT and Sales Tax

Classification of goods - emulsified bitumen - whether emulsified bitumen , which is stated to be a liquid form obtained from the process of heating the bitumen at certain temperature, is different and distinct from bitumen ? - taxable at the rate of 12.5 per cent as an unclassified item or not. HELD THAT - Learned counsel for the parties are ad idem that, an identical question stands answered in favour of the Appellant-Assessee by a Co-ordinate Bench of this Court in Commissioner of Commercial Tax, Uttar Pradesh Versus AR Thermostat Private Limited 2016 (9) TMI 410 - SUPREME COURT where it was held that the use or end use test is also satisfied - bitumen and bitumen emulsion are one and the same commodity - taxable at 4%. The Appellant-Assessee is held liable to a levy 4 per cent tax in terms of the Entry 16, Schedule 2, Part II of the Madhya Pradesh VAT Act for the purpose of levy of VAT for the relevant period. Appeal disposed off.

Summary

The Supreme Court ruled that 'emulsified bitumen' is taxable at 4% under the Madhya Pradesh VAT Act, following a precedent that favored the Appellant-Assessee. The High Court's judgment was set aside.