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TMI Blog2016 (5) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... 70% of edible oil and 26% of water. The other contents amounts to only 4%. Therefore, it is clearly a question of considering whether the product Nutralite which is also Margarine a generic term would describe the very product as edible oil or not. There is no reason to hold that the product shall not fall under the Entry “Edible Oil” and under the “Un-Scheduled Goods”. Therefore, the Commissioner’s reasoning and conclusion are clearly erroneous. Therefore, the “Nutralite” would fall under the Entry 31 of the Schedule III of the KVAT Act, ‘Edible Oil’ and would attract the rate of tax prescribed in respect of edible oils. - Decided in favour of appellant - WRIT PETITION NO.15894 OF 2016 (T-RES) - - - Dated:- 22-3-2016 - MR. ANAND BYRARED ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that the product would be classified under Section 4(1) (b)(iii) of the KVAT Act as unscheduled goods and hence would attract value added tax at the rate of 12.5% from 0.104.2005 to 31.03.2010, at 13.5% from 01.04.2010 to 31.03.2011, at 14% from 01.04.2011 to 31.07.2012 and at 14.5% from 01.08.2012 and onwards vide its order dated 31.01.2015. The petitioner being aggrieved by the said order, approached this Court by way of writ petition in W.P. No.33227/2015. This court had summarily allowed the petition since it was found that the Officer who ha d passed the order was not the officer who had heard the matter and directed the 2nd respondent to afford the petitioner a reasonable opportunity of being heard. Thereafter the petitioner is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the edible oil and water proportion. In terms of usage, both the products can be used exactly in the same manner viz., for spreading, cooking, baking, etc., In the instant case, Nutralite is made by emulsification of edible oil with water and comp rises of 70% edible oil. 5. It is stated that Margarine is a generic term. Margarine or fat spread can be used as an alternative to butter or oil, as a raw material for preparing bake ry and confectionary products, etc., In fact the Supreme Court of India in Aluva Sugar Agency vs. State of Kerala, 20 11 (11) SCR 206, after considering its ingredients and composition and the usage, has held that the Margarine is to be considered as Edible Oil . Margarine can be used as a spread because of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al or Vegetable Waxes . Entry under which Nutralite is cleared falls under 1517 Magarine Edible Mixture or Preparations of Animal or Vegetable Fats or Oils or Fractions of Different Fats or Oils of this Chapter, other than Edible Fats or Oils or Their Fractions of Heading 1516. It is in this background that the present petition is filed and therefore seeks the opinion expressed by the Commissioner would apply across the board and would effect dealers throughout the State of Karnataka. It is in that context the present petition is taken up for consideration at the stage of preliminary hearing. 7. After having heard the learned Government Advocate it is noticed that the reasoning of the Commissioner having considered the law laid down in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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