9911796707
TMI Blog2005 (3) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the assessment order dated February 11, 2003 passed by the Assistant Commissioner, Commercial Taxes, Patna South Circle, Patna under section 17(3) of the Bihar Act for the assessment years 20002001 and 2001-2002 by which the Parachute coconut oil, the product sold by the petitioner has been charged the sales tax at the rate of 12 per cent in terms of entry No. 245 instead of 9 per cent as provided under entry No. 63 and the orders dated August 31, 2003 and July 1, 2003 passed by the Commissioner of Commercial Taxes, Bihar, Patna, upholding the said order of the assessing officer as well as the common order dated November 1, 2004 passed by the Commercial Taxes Tribunal, Bihar, Patna, in revisions filed by the petitioner upholding the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd entry No. 245 contains hair oil including medicated hair oil and rate of tax prescribed was 12 per cent. Again another notification was issued on March 27, 2003 and in the said notification coconut oil has been taken out from entry No. 63 and included in entry No. 245 with effect from April 1, 2003. There is no controversy that coconut oil is now included in the hair oil and the controversy is with regard to earlier period. 5.. The question which falls for consideration in this case is as to whether Parachute coconut oil, product of the petitioner is a hair oil covered by entry No. 245 of the Notification dated July 27, 2000 providing the rate of tax at 12 per cent or it is covered by entry No. 63 of the notification dated December 26, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed only as hair oil in the State of Bihar. 8.. Learned counsel appearing for the State on the other hand submitted that the settled law is that criteria for determining as to whether a particular item will fall under which entry is to be determined by the use of it put to by the customers who use it and the judicial notice can be taken of the fact under section 56 of the Evidence Act that the coconut oil is not used as edible oil in the State of Bihar and the Tribunal has rightly held that entry No. 245 will apply in the case of product of the petitioner. 9.. It is settled law that the taxing statute is to be interpreted strictly and if different view are possible with regard to a matter then the view favourable to the subject or the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible refined coconut oil under the brand and trade name "Parivaar ". The assessee was paying tax at the rate of 4 per cent on the rate applicable under entry No. 50 which includes "all kinds of edible oils including edible coconut oil whether refined or filtered" and not 12 per cent as provided under entry No. 72 which includes all types of hair oils including refined or filtered coconut oils. The Tribunal held that the coconut oil is used for dual purpose but it was used as edible oil, therefore entry No. 50 was attracted. 13.. The said case is not helpful for deciding the matter in controversy in this case for the simple reason that there the same product was included in both the entries and view favourable to the assessee was taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, 1984 is not correct as section 2(f) defines edible oils specified in Part "D" of Schedule I which includes hydrogenated vegetable oil. Hydrogenated vegetable oil is hair oil and coconut oil is a hydrogenated vegetable oil and as such the Tribunal was not right in taking the same as a ground for deciding against the assessee. The other ground that advertisement shows that Parachute coconut oil is hair oil is also not relevant factor as there is no dispute that the coconut oil is used for both purposes for hair oil as well as edible oil. Thus two of the grounds given by the Tribunal are wholly irrelevant. 18.. As there was controversy as to whether the coconut oil is hair oil or edible oil, the Tribunal should have determined the clas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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