Levy of tax on milk cream sustained as milk cream & milk are different product

Gujarat Co-Operative Milk Marketing Federation Ltd Vs Additional Excise & Taxation Commissioner and Another(Himachal Pradesh High Court)

Himachal Pradesh High Court held that milk cream is different from milk. Accordingly, revision petition is dismissed and demand of tax @ 4% sustained.

Facts- The assessee is a registered dealer under the said statute and is engaged in the trading of milk products, milk, edible oils, etc. One of the product, the assessee is dealing with is “milk cream”.

The Assessing Authority of the Excise Department had completed the assessment relating to the assessee qua VAT for the Assessment Years 2005-06 to 2008-09 on February 16, 2009, and January 27, 2010, respectively.

Thereafter, the Excise and Taxation Commissioner noted that the assessee was liable to pay VAT on its sales of milk cream but is not assessed for the previous five years. Thereafter, Suo Moto Revision was entertained by the Additional Excise and Taxation Commissioner-cum-Revisional Authority and noticed that the assessee has not deposited the tax on fresh milk cream for the said period. Thereupon, notice was issued.

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