The case involves the statutory interpretation of Entry 41 of ...

The court clarified the classification of medicated ointments under tax law.

Case Laws VAT and Sales Tax

August 8, 2024

The case involves the statutory interpretation of Entry 41 of Schedule II of the Act regarding the classification of a product as a medicated ointment. The court emphasized harmonizing inclusive and exclusive clauses in legislative provisions. Entry 41 aims to classify products based on medicinal properties, with medicated ointments receiving favorable tax treatment. The use of "but" in the entry indicates an exception for medicated ointments. The Revenue failed to disprove the product's classification, highlighting the importance of meeting the burden of proof. The court cited precedents emphasizing the Assessee's favorable interpretation in charging sections. The Tribunal's classification of the product as a medicated ointment was supported by robust evidence, leading to the dismissal of revision petitions. The High Court's revisional jurisdiction is limited to questions of law, jurisdictional errors, or procedural irregularities, not factual re-inquiry. Perversity in decisions requires meeting legal thresholds with concrete evidence. The Tribunal's decision was supported by substantial evidence, justifying the dismissal of revision petitions.

View Source

← Previous Next →

The case involves the statutory interpretation of Entry 41 of ...

The court clarified the classification of medicated ointments under tax law.

Case Laws VAT and Sales Tax

August 8, 2024

You may also like:

Classification of goods - “Hydent-K” Potassium nitrate with fluoride medicated toothpaste - to be classified as medicament.

Classification of goods - chlorinated paraffin - It is a settled law that any clarification with regard to any Act will always have retrospective effect for the reason...

Prospective or Retrospective application of amendment to the provisions of the Act and Rules - The High Court touched upon the principle that delegated legislation,...

Classification of goods - absorbent cotton wool (non medicated) - ‘Absorbent cotton wool’ manufactured by the appellant falls under CETH 5601 2110 being a more specific...

SEZ Units, Exemption and Refund of servcie tax, CBEC clarifies various issues

Service Tax on ‘Short Term Accommodation Service and Restaurant Service’ – CBEC clarified various issues

Refund of service tax paid on Reverse Charge Mechanism - It is the case of the Department that payment of service tax on RCM, availment of CENVAT credit of the same and...

Tax planning versus Tax evasion - The Assessing Officer cannot disregard a transaction just because it results in a tax advantage to the assessee. Just as much as we...

Disallowance of education cess on income tax and dividend distribution tax u/s 40(a)(ii) - Assessee has fairly conceded that as per amendment vide Finance Act, 2022...

Refund of service tax - Export of goods - allegation of illicit mining - Levy of tax on illegal activities / illegal export. - unless there is any provision to the...

Applicable rate of tax (GST) - Classification of goods - mango pulp supplied to 100% Export Oriented Unit which further exports such pulp outside the country after minor...

Refund claim of service tax paid - classification of services - Claiming a refund of the amount paid as tax as per their understanding of law cannot be disputed now -...

Adjustment of excess service tax paid with subsequent service tax liability - case of Revenue is that Rule 6 (3) of Service Tax Rules, 1994 do not provide for such...

The assessee had been following the mercantile system of accounting, wherein book profits are taken for tax assessment, though credit or debit amounts may not be...

Income assessed in hands of Appellant as Representative Assessee. No credit for prepaid taxes availed by beneficiaries. JCIT(A) directed AO to verify claim of prepaid...

Quick Updates: