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TMI Blog2016 (11) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Tribunal was justified in upholding the order of Financial Commissioner that submersible pumps are classified under residual entry for the period upto 30.6.2006 when there was no competing entry in Schedule 'C'? (iii) Whether on the facts and circumstances of the case, the Ld. Tribunal was justified in holding that the order of Financial Commissioner that submersible pumps are classified under Entry 71A of Schedule 'C' after the introduction of Note 4 to Schedule 'C' w.e.f. 1.1.2006? 3. Learned counsel for the appellant submitted that the submersible pumps being manufactured by the members of the appellant's association were exempted from taxation in view of Entry 1(D)(9) of Schedule 'B' of the Haryana Value Added Tax Act, 2003 (for short 'the Act'). Vide notification dated June 20, 2006, Schedule 'C' appended to the Act was amended. Entry No. 71-A was added providing for pumps set below 5 HP. As confusion arose regarding taxability of the pump sets, the same being mentioned even in Schedule 'B' providing for tax free goods, application was filed to the State Government under Section 56(3) of the Act for seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more beneficial to the assessee is to be preferred. As the submersible pumps are mentioned in Entry 1(D)(9) of Schedule 'B' containing tax free items and also Entry 71-A of Schedule 'C' providing for taxable goods, the Entry contained in Schedule 'B' regarding submersible pumps is to be preferred. 7. It was further submitted that when the goods can be covered in a specific entry, there is no need to go to the residual entry. Onus is on the Revenue to establish that the goods fall in a particular entry for the purpose of taxability. If there is any doubt, the benefit is to go to the assessee. There is no scope for any intendment in a taxing statute. 8. In support of the arguments, reliance was placed upon CWP No. 14869 of 2006 titled as Excise and Taxation Officer Vs. M/s T.R. Solvent Oil Pvt. Ltd. and another decided on 24.9.2010 (P&H); Siemens India Limited Vs. The State of Gujarat, 1984 (57) STC 1 (Gujarat); Engineering Traders Vs. The State of Uttar Pradesh and another, (1973) 31 STC 456 (Allahabad); Karnal Machinery Store Vs. The Assessing Authority, Karnal and others, (1973) 31 STC 3 (P&H); Dunlop India Ltd. and Madras Rubber Factory Ltd. Vs. Union o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th fitting Schedule 'C' Sr. No. Description of goods 71 A Pump sets below 5 Horsepower. xx xx xx xx (Note 4: Goods of the description contained in this Schedule shall be deemed to have been excluded from Schedule B.) Inserted vide SO 104/HA 6/2003/S. 59/2005, dated 29.12.2005 w.e.f. 29.12.2005." 12. The appellant in the present case filed application under Section 56(3) of the Act before the State Government seeking clarification on the following issue: ''Whether submersible pumps are covered under entry 71-A of Schedule C of the Haryana Value Added Tax Act, 2003 amended on 20.6.2006 with effect from 01.07.2006 vide Notification No. S.O. 58/HA/6/2003/S.59/2006.'' 13. A perusal of the aforesaid question shows that the clarification was sought by the appellant on the issue whether the submersible pumps are covered under Entry 71-A of Schedule 'C' as amended on June 20, 2006 effective from 1.7.2006 as prior to that submersible pumps were mentioned only in Entry 1(D)(9) of Schedule 'B' (tax free goods). The government opined that the submersible pumps below 5 HP are covered under Entry 71- A of Schedule 'C' and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n meaning with no addition, substraction or intendment. Item No.(x) in the list of components is 'prime movers' i.e. Electric/diesel pump set of 5 HP and above with fitting. It is not complete pumping set. It is only one of the component for pumping set. Intention of the legislature is clearly evident that while exempting pumping sets, there was no limit prescribed regarding its capacity, whereas while granting exemption to the components thereof, the limit was prescribed in the case of prime movers. The exemption was available only to the electric/diesel pump sets of 5 HP and above. The entry has to be given its true meaning. 17. In Commissioner of Commercial Tax, U.P. v. M/s A.R. Thermosets (Pvt.) Ltd., 2016(8) SCALE 573, the issue under consideration before Hon'ble the Supreme Court was the rate of tax on bitumen emulsion. Bitumen is in solid form, whereas bitumen emulsion is in liquid form. Bitumen emulsion is a processed bitumen. It comes into existence when bitumen is treated with emulsifiers and other chemicals to attain a liquid form. The stand taken by the revenue was that the word ''bitumen'' should be given narrow meaning for the reason that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention raised by learned counsel for the State regarding reduction of tax from 12.5% to 4% on mono block pumps on representation made by association is concerned, from the office file produced by her in Court, it is evident that the matter was considered in the 2nd meeting of the State Level Consultative Committee held on 7.01.2006. The representation was by Manufactures' Association, Faridabad (the appellant in the present case is Haryana Pump Manufacturers Association, Karnal). The demand raised was for reduction of rate of tax from 12.5% to 4%. The proposal clearly suggested that the mono block and other pumping sets were tax free in Haryana while these were being taxed @ 4% in Punjab and Delhi as per E.C. approved rate. The exemption was available to agricultural pumping sets alone. The other pump sets were being taxed @ 12.5%. The proposal was to reduce the rate of tax on non-agricultural mono block and submersible pumps and parts thereof to bring it at par with the rates of taxes in the neighbouring States. 21. In the case in hand the dispute upto 30.6.2006 is not pertaining to pumping sets which are not for agricultural use. Entry 1(D)(9) in Schedule 'B' talks a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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