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TMI Blog2018 (5) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... te sizes and shapes mostly come with self interlocking patterns. The paver blocks are also sometimes referred to as paver bricks. They are getting increasingly more popular for ground paving purpose. They are used predominantly in paving footpaths, gardens, sidewalks, busstops and other public places. These paver bricks are superior to the conventional bricks in number of ways including the durability, the ease of laying and removing. With the use of combination of shapes and colours, they can also be used for beautifying the place. One of the major advantages in use of these material is that these bricks are easy to remove enabling easy underground repair work. The Tribunal was correct in coming to the conclusion that paver blocks and curb stones are classifiable within entry 10(1) of Schedule II to the Gujarat Value Added Tax Act - appeal allowed - decided against Revenue. - R/TAX APPEAL NO. 1158 of 2013 With R/TAX APPEAL NO. 79 of 2014 - - - Dated:- 27-4-2018 - MR. AKIL KURESHI AND MR. B.N. KARIA, JJ. For The Petitioner : Ms. Shruti Pathak, AGP (1) For The Respondent : Uchit N Sheth(7336) COMMON ORAL JUDGMENT ( PER : HONOURABLE MR.JUSTIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermining Authority, the assessee approached the Gujarat Value Added Tax Tribunal ('the Tribunal' for short). The Tribunal by the impugned judgment dated 15.06.2012 held that the paver blocks and curb stones are bricks covered under entry 10(1) of the scheduleII to the VAT Act. 6. In Tax Appeal No.1158 of 2013, respondent assessee is similarly engaged in dealing in paver blocks. Here also, assessee had applied before the Determining Authority under section 80 of the VAT Act contending that such product would be classified as brick. Simultaneously, he also raised an issue regarding composition of tax. The assessee was granted a contract for construction. In the process, the assessee utilized the paver blocks which were manufactured by the assessee itself. The question was, in such situation, would the assessee be entitled to the composition scheme in terms of section 14A of the VAT Act. 7. The Determining Authority decided both the questions against the assessee. As in the previous case it was held that the paver blocks are not bricks, on the question of composition of tax, he held that the goods used by the assessee in execution of the works contract did not bear the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e two terms viz., taxable goods and tax payable under the Act. A literal reading of this provision may lead to a situation where as in the case on hand a dealer uses goods which otherwise as per the definition of the term, can be categorized as taxable goods. The dealer, however, does not pay tax because he is not required to pay tax, and therefore, he would not have fulfilled the said condition of bearing the tax payable on use of taxable goods. However, we do not think this interpretation is either correct or reasonable or in any manner brings out the true legislative intent. In plain terms, what the legislature desired by framing the said provision is that a dealer who has been granted permission for composition of tax must have paid tax; as prescribed, upon consumption of taxable goods. This does not however mean that the dealer has to pay tax whether such liability under the Act has arisen or not. It is in this context, we may understand the term tax payable under the Act. When the taxing event is sale of goods and such event has not arisen, there would be no question of tax becoming payable under the Act. This itself would be sufficient to dislodge Departments objection. We m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontractor would be rendered totally ineligible to apply for composition. Such an interpretation cannot be accepted. This would amount to subrule [8] of Rule 28 virtually governing the eligibility conditions for composition of tax which conditions are prescribed in Section 14A of the Act. Rule 28 [8] of the VAT Rules being a piece of subordinate legislation must yield to the provisions contained in the Act. In the result, impugned notices are setaside. Petition is allowed and disposed of accordingly. 11. In view of the said judgment, second question framed in Tax Appeal No.1158 of 2013 is answered in the affirmative and decided against the department. 12. Sole surviving question though merely differently worded in both the Tax Appeals, is with respect to the correct classification of the goods in question viz. interlocking paving blocks and curb stones. In this context, learned AGP for the appellant submitted that the Tribunal committed an error in holding that the said product would fall within the entry 10(1) of scheduleII which pertains to bricks because of following reasons: I. The dictionary meaning and common parlance understanding of bricks is entirely diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing patterns. By combining these blocks in desired numbers, a footpath, a portion of ground, a waiting area or such like can be paved with minimum effort and with greater durability. When used in different shapes or colours one can also create design or patterns on the floors so paved. Besides being easy to install, they are also easy to remove in case there is a possibility of frequent installation and relaying of underground ducts, pipelines or wires or the likes. 18. One of the Wikipedia articles supplied to us states that the pavings blocks are also known as brick paving. The main advantage of these bricks is that the same can be later on lifted up and replaced. This allows for remedial works under the surface without leaving a lasting mark once the paving has been replaced. They are used mainly for driveways, pavement, patios, town centers, precincts and road surfacing. These bricks are typically made of concrete or clay though other composite materials are also used. A clay brick has to be fired in a kiln to bake. The concrete brick has to be allowed to sat. The concrete paving bricks are a pores form of bricks form by mixing small stones, dyes, cement, sands and other mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ease of laying and removing. With the use of combination of shapes and colours, they can also be used for beautifying the place. One of the major advantages in use of these material is that these bricks are easy to remove enabling easy underground repair work. In other words, these paver blocks fulfill the same purpose as the conventional bricks would do insofar as levelling and paving of ground surface is concerned. These uses of paver blocks and the conventional bricks overlap and are in fact interchangeable. It is however true that these paver blocks are not known to be used for the construction of walls and buildings which use the conventional bricks and other eco friendly and hollow bricks could be used for. In terms of legal implications, what would be the effect of this facts, may now examined. 21. In case of Maruti Yeast India Pvt. Ltd. v. State of U.P. And Another reported in [2008] 14 VST 259 (SC), the Supreme Court in the context of interpretation of an entry in a sales tax, held and observed as under: 42. It is now wellsettled principle of law that in interpreting different entries, attempts shall be made to find out as to whether the same answers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . v. State of Haryana reported in [1978] 42 STC 433, it was observed that it is well settled that in a taxing statute words of everyday use must be construed not in their scientific or technical sense but as understood in their common parlance. 24. From the principles emerging from the above noted judgments, we would have to give the widest amplitude to the entry in question. Only if we find that the entry does not through such interpretation also include the product in question can be fall back on the residuary entry. In the process, we would apply the common parlance test. 25. Applying all these principles and on the basis of the usage and the purpose of manufacturing both the products, as also looking to the language used in the entry, we hold that the Tribunal was correct in coming to the conclusion that paver blocks and curb stones are classifiable within entry 10(1) of Schedule II to the Gujarat Value Added Tax Act. We are conscious that Division Bench of Karnataka High Court in case of Assistant Commissioner of (Head Quarters)VAT Division, Mangalore and others v. H. H. Cement Products reported in [2016] 92 VST 498 (Karn) has taken a contrary view. However ..... X X X X Extracts X X X X X X X X Extracts X X X X
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