9911796707
TMI Blog2024 (3) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... leaner" under Item 31 of the Fourth Schedule to the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as "TNGST Act") thereby levying tax at the rate of 14% under the TNGST Act, while rejecting the classification made by the petitioner that the above products viz., "Harpic Disinfectant Toilet Cleaner" and "Lizol Disinfectant Toilet Cleaner" are disinfectants liable to tax at 9% in terms of Item 87 of the Third Schedule to the TNGST Act for the period 01.07.2017 to 13.11.2017. 2. The petitioner is engaged in the manufacture and supply (sale) of floor cleaners, toilet cleaners, medicated soap, dish wash, hand wash etc. The petitioner is a registered dealer in the office of the 2nd Respondent herein. During the relevant per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oap or detergent 31 3402 Organic surface-active agents (other than soap); surfaceactive preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 3401. The tax payers had been adopted 18% tax rate by using the following HSN code as under (Up to 13-11-2017) Item No.87 of Third Schedule vide HSN Code 38089400 INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING No 87 of PRODUCTS AND PLANT GROWTH REGULATORS, DISINFECTANTS AND SIMILAR Third PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS Schedule PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS)-DISINFECTANTS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined finality. b) Reliance was also placed on the fact that the authorities under the Drugs and Cosmetics Act, 1940, had treated Harpic and Lizol as disinfectants as evident from the fact that the petitioner had obtained a drug license under the Drugs and Cosmetics Act for Harpic and Lizol. c) The Indian Institute of Chemical Technology, Hyderabad, had also certified both Harpic and Lizol as having very high capability to kill bacteria and germs and thus disinfectants. d) The Central Excise authorities have also treated Harpic and Lizol as disinfectants and classified the same under Chapter 3808.91. e) Reliance was placed on common / commercial parlance to submit that Harpic and Lizol was treated by the consumers as disinfectants an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as below: The taxpayer replied that, since GST act 2017 came into force the company has been classifying harpic and lizol under item no 87 of Third schedule relatable to HSN code 38089400 subject to 18% by classifying it as disinfectants. But the department classify under item no 29,30,31 of fourth schedule relatable to HSN code 3307,3401,3402 subject to 28%. Since Harpic is a disinfectant used in toilets and lizol is a disinfectant used on floors does not mean the expression Toilet preparation. The expression "Toilet preparation' listed under item no 29,30,31 of fourth schedule relates to products used in human body like cosmetics, soaps, cream etc. Hence harpic and lizol cannot be used on human body for cleansing therefore they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls the germs and bacteria present in the bowl. In support of the above by analyzing the reply of the taxpayer which contains chemical compounds used, ingredients etc the following has been identified:- Lizol: The ingredients used are Benzalkonium Chloride solution (Maximum share), Fatty alcohol ethoxylate, Sodium bicarbonate, EDTA tetrasodium and other fragrance and perfumed products and other chemical products. Here the chemical Benzalkonium Chloride solution which contains 95% of ethanol/ethyl alcohol. The main usage of ethyl alcohol is it act as a solvent for oil, resins, fat etc. It solubilizes the oil and thus removes grease, stains etc Fatty alcohol ethoxylate which is used as surfactant. The term surfactants mean surface a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order of assessment I find that though detailed objections under various Heads have been made by the petitioner the impugned order of assessment has not dealt with the same. It is fundamental that any quasi judicial order ought to be made taking into account all factors that are relevant while eschewing the irrelevant. The fact that the impugned order of assessment do not even refer to several aspects raised in the objection indicates that the same has been made without applying its mind to the objections made. It is trite law that when objections are raised a duty is cast on the assessing authority to apply its mind to the objections and deal with each one of them. Failure to do so would vitiate the order of assessment on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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