IN THE OFFICE OF THE COMMISSIONER
DEPARTMENT OF TRADE AND TAXES
GOVERNMENT OF NCT OF DELHI
VYAPAR BHAVAN, I.P.ESTATE, NEW DELHI
No. F. 385/CDVAT/2015/433 Dated ; 13.04.2016
Name of the firm: M/s Grindwell Norton Ltd.
Present for the applicant: Sh. Sunil Aggarwal, Advoate
Present for the Department: Sh.M.K.Aggarwal -Department Representative
The applicant dealer has filed a determination application on 02.11.2015 under Section 84 of Delhi Value Added Tax Act, 2004 (hereinafter referred to as the “said act”) and the question put up for determination under the aforesaid provision of law is. as under :-
“Whether the sale of all kinds of Scrub Pads / Scrubbers used by the household for cleaning the household items is covered by Entry 84 of Schedule-I of DVAT Act and exempted from VAT”
1. The application has been filed in prescribed format DVAT-42 and the requisite fee of Rs.1000/- paid through online. reference No. 420257593731015 dated 29.10.2015 of ICICI Bank Ltd.
2. Sh. Sunil Aggarwal, Counsel of the Company, appeared and reiterated the facts and grounds of the case and requested to determine “Whether the sale of all kinds of Scrub Pads / Scrubbers used by the household for cleaning the household items is covered by Entry 84 of Schedule-I of DVAT Act and exempt from VAT”.
3. The dealer is registered in Ward-206 having TIN -07810024907.
4. The brief facts of the case, as explained by the applicant are as under :
i) That, the petitioner company is a manufacturer of various kind of abrasive products i.e. bonded abrasives, coated abrasives, nonwoven abrasives etc.
ii) That, after the goods manufactured at various manufacturing units of the petitioner, the goods are directly sold to business entities all over India. The goods are also sent by the petitioner company to its various branches in India for onward sales.
iii) That, the petitioner company is also dealing with one product known as “Scrub Pads / Scrubbers” which is used by the household for all household cleaning items and is also commonly known as “Juna” in Northern India which is covered by Entry-84 of Schedule-I of DVAT Act,2004. Currently the company is selling these products directly from Bangalore on CST Basis. However, they would start stock transfer these products to Delhi to market in Delhi.
iv) That, as per the submission and nature of product “Scrub Pads / Scrubbers” and are coated abrasives-Non-woven abrasives sold as “Duna” are covered by Entry-84 of Schedule I of the DVAT Act,2004 and are exempt from levy of tax.
5. With these averments, the applicant requested to determine the rate of VAT on Scrub Pads / Scrubbers.
6. The DR appearing on behalf of the department stated that entry 84 of schedule -1 of the DVAT Act 2004 reads as Juna. The word juna refers to a pad made up of hairs of coconut, used for washing utensils. It is normally made up of naturally occurring fibres of coconut. The product referred, by the applicant is made up of synthetic fibres i.e. non-woven web of fibre, nylon and polyster fibres. The product is different from juna and hence is not covered under the meaning of the word juna. Further the product is also not covered under entry 162 of third schedule of the DVAT Act 2004, as coated abrasives or bonded abrasives. As abrasives are used to shape or finish a thing through rubbing which leads to a part of the work piece being worn away while in the instant case the product referred to by the applicant is just used for cleaning household items. Hence the product falls under the unspecified category and is taxable u/s 4(1)e of the DVAT Act at 12.5%
7. I have heard both the sides and gone through the documents available on record and of the view that the product under consideration scrub pads/scrubber used for cleaning household/kitchen items is not covered under the meaning of the word juna or abrasive and hence is taxable u/s 4(1)e of the DVAT Act 2004 at 12.5%.
8. Held accordingly.
(S. S. Yadav)
M/s Grindwell Norton Ltd.
33/17, Opp B.S.Chemicals
Main Bawana Road, Delhi-110 012
Copy for information and necessary action to :
1. Addl. Commissioner (Law & Judicial)
2. Addl. Commissioner (System)
3. Programmer (EDP) for uploading this order on web.
4. Assistant Commissioner (Policy)
5. President, Sales Tax Bar Association(Regd.)
6. Guard file.