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TMI Blog2011 (8) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... d Tax Act as against 12.5 per cent assessed under entries 19 and 103 of SRO No. 82/2006 issued under section 6(1)(d) of the Kerala Value Added Tax Act. We have heard Government Pleader for the petitioner and advocate Sri Mayankutty Mather appearing for the respondent-assessee. The respondent is a manufacturer and seller of the products by name2 fat paste cream and choco paste . The dispute raised is only with regard to rate of tax applicable to the product under the Kerala Value Added Tax Act. In order to identify the relevant entry under which tax is to be levied, we have to identify the product with reference to the ingredients used in the manufacture and the nature of use of the products. Accordingly we extract hereunder the product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 1806.90.10 2. Sugar confectionery containing cocoa : 1806.90.20 3. Spreads containing cocoa : 1806.90.30 4. Preparations containing cocoa for making beverages : 1806.90.40 5. Other : 806.90.90 After hearing both sides, we are of the view that entry 7 broadly covers all kinds of sweets, confectionery, food products and other bakery products other than those sold under brand name registered under the Trademarks Act. The Department's ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d so much so, the fact that it is not a final product in itself does not mean that the product falls outside entry 7 of the Third Schedule. We, therefore, hold that the Tribunal rightly qualified fat paste cream as item falling under entry 7 of the Third Schedule. So far as choco paste is concerned, we are unable to accept the contention of the respondent that found acceptance with the Tribunal because in our view, food preparations with cocoa as an ingredient squarely falls under entry 19 of Notification SRO 82/2006. Government Pleader rightly contended that the Tribunal's finding that cocoa powder is a waste material is factually incorrect. In fact, cocoa powder is one of the products made from cocoa beans and admittedly eight per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a powder is one of the valuable cocoa products manufactured from cocoa beans, no matter processing of cocoa beans may yield different cocoa products. Further, in absolute terms, eight per cent use of cocoa in the product makes it a cocoa product and admittedly the respondent itself named the product choco paste , i.e., after cocoa giving the impression that it is the predominant ingredient. Even though major ingredient by weight in confectionery is sugar, nobody calls it after sugar or calls it a sugar product. The product identification is in fact with reference to the components used, may be cocoa, orange flavour, lemon flavour, etc. We are, therefore, of the view that cocoa paste is an item falling under entry 19 of Notification SRO 82/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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