9911796707
TMI Blog1998 (12) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... r, Circle A Jaipur is its regular assessing authority (AA). The petitioner has a factory at Ahmedabad and carries on the business of manufacture and sale of edible refined coconut oil under the brand and trade name Parivaar which is marketed in containers of various sizes, all of which specifically mentioned that the oil contained is edible coconut oil. The petitioner has been licensed by the District Supply Officer, Jaipur under the Essential Commodities Act for the storage and wholesale of oil and oil-seeds. The petitioner is not licensed under the Drugs and Cosmetics Act, 1940; such licence would have been necessary, had the goods that the petitioner dealt in been hair oil. 3.. The State Government in exercise of powers conferred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the RST Act to the same effect as the earlier notice. 6.. The application seeks the setting aside of these notices. 7.. It is contended by the petitioner that the ACTO, AE had no jurisdiction as this was a case of interpretation of entries which did not amount to evasion of tax; that this Tribunal had held in D.K. Woollen Industries Pvt. Ltd. v. C.T.O. A.E. [1998] XXI Tax World (Full Reports) 14, that in such cases anti-evasion authorities did not acquire jurisdiction therefore the impugned notices were null and void being without jurisdiction ab initio; that the petitioner was entitled to the benefit of doubt as held by the Supreme Court in Polestar Electronic (Pvt.) Ltd. v. Additional Commissioner, Sales Tax [1978] 41 STC 409 (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scientifically filtered to preserve its purity. 8.. The petitioner has also brought on record the certificates of registration issued to it under the RST and CST Acts by the AA which mention that the petitioner is in the business of all kinds of oil including crude oil, vegetable oil, hydrogenated oil, refined and ghee and food items . 9.. On behalf of the respondent it is contended that the ACTO, AE had the necessary jurisdiction in the matter under various notifications issued by the Commissioner, Commercial Taxes; that there was a specific entry under item No. 72 for hair oil which also covered refined and filtered coconut oil; that the product marketed by the petitioner was sold as hair oil and as such was taxable at 12 per cent; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses. They continued none the less to be edible oil. In this view of the matter the kind or size of the packing does not alter the nature or character of the goods. By being packed in small containers it does not cease to be edible. 14.. Therefore the rates of tax applicable to the sales of refined coconut oil as refined coconut oil and not as hair oil is 4 per cent. The petitioner admittedly collected and deposited the tax at this rate on the sales of refined coconut oil. It cannot therefore be said that the petitioner was guilty of evasion of tax. The exercise of the jurisdiction by the ACTO, AE was therefore irregular. 15.. The application is allowed. The impugned notices are quashed and set aside. No order as to costs. Application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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