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TMI Blog2009 (7) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... n sold in air tight containers and therefore the same was rightly assessed at 12 per cent under entry 62 of the First Schedule to the KGST Act. The assessments involved are 2003-04 and 2004-05. The first appellate authority reversed the assessment declaring the rate at four per cent under entry 173 of the First Schedule to the KGST Act which was confirmed by the Tribunal against which revisions are filed. We heard learned Government Pleader appearing for the State and the counsel appearing for the respondent. The learned Government Pleader has referred to the Tribunal's order and contended that the Tribunal's conclusion is based on the finding that the item is not sold in air tight containers. According to him, white oats are sold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9A of the said Schedule wheat was also taxable at only one per cent. Even though cereals as such under entry 9 are taxable at a lower rate of one per cent, products of wheat that is maida, atta, suji were subject to tax under entry 172 at four per cent. Entry 173 provides for tax on flour of cereals, pulses and their mixtures whether packed in air tight containers or not. It is obvious from these entries that even prior to the introduction of VAT scheme the KGST Act provided for taxation of cereals pulses and their variants in product form at low rates ranging from one per cent to four per cent. In this context we have to examine whether oats which is also a cereal when sold in the form of flakes in air tight containers is taxable at four p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the oats sold in flakes or in crushed form as is done here can be treated as oats flour to bring it under entry 173. We do not think flour in the context used in entry 173 has any technical meaning to exclude crushed grain from it. On examination of the product sample we find that substantial portion of it is in powder form and remaining in the form of flakes. We are of the view that entry 173 is broad enough to cover cereals in various forms and all what is required for coverage under it is that it should be in raw condition requiring cooking for consumption. In fact all value added products of cereals sold in air tight containers except in cooked form are also covered by entry 173. We therefore hold that the item sold by respondent was r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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