9911796707
TMI Blog2016 (5) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Karnataka Value Added Tax Act, 20 03 (herein after referred to as KVAT Act, 2003). The petitioner, inter alia, deals with a product called "Nutralite" a brand of fat spread manufactured by M/s. Zydus Wellness Limited. According to the petitioner the said product is primarily comprised of edible oil and its use being similar to that of edible oils, the petitioner was of the understanding that the said product "Nutralite" is liable to be taxed as Edible Oil at the rate of 5.5% under Entry 31 of the Third Schedule to the KVAT Act, 2003. The petitioner in order to as certain the applicable VAT on the said product and to pay value added tax in accordance with law, approached the respondent No.2 by an application dated 02.09.2014, under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Senior Advocate would submit that the composition of Nutralite Fat Spread is indicated in the tabular form as here under: Edible Oil (Palm Oil) 70% Water 26% Skimmed Milk, Emulsifiers, water, common salt, Vitamin A Vitamin D, Vitamin E, Acidity Regulator, Starch, Sequestering Agents, Antioxidants, etc 4% It is pointed out that apparently it is primarily composed of edible oil, which is emulsified with water and to this salt, stabilizers, vitamins, etc., are added which totally comprise the balance 4%. Therefore, edible oils or Vanaspati are mixed with water and emulsifiers, the product is margarine if the total fat content is more than or equal to 80% and is called fat spread if the total fat content is less than 80%. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d should also be considered as edible oil and taxed at the rate of 5.5% as enumerated under Entry 31 of the Third Schedule of the KVAT Act which reads as follows: "Entry 31: Edible Oils (Non-refined and refined), but excluding coconut oil sold in sachets, bottles or tins of 200 millilitre each or less, including when such consumer containers are sold in bulk in a common container, oil cake." 6. It is further contended that the second respondent, the Commissioner of Commercial Taxes has reached the erroneous conclusion that Nutralite would be classified as "unscheduled goods", without properly appreciating the proposition of law laid down by the Supreme Court and thereby has come to a wrong conclusion. It is also pointed out that Nutrali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luded Margarine and the Court in that case had placed the product there along with the products covered by the Entry and the classification can never be disassociated with the entry itself and that in the present case on hand the classification only contemplates edible oil. And since Nutralite was different from edible oil the conclusion having been arrived at, may not be fair to the petitioner. The ingredients of the product are clearly shown to be consisting of 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 rea son to hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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