Case Law Details
Commissioner Vs Adani Wilmar Ltd. (Allahabad High Court)
Allahabad High Court held that both the goods i.e. ‘Bakery Shortening’ and ‘Vanaspati (hydrogenated vegetable oil)’ are being treated as one under Central Excise Tariff Act as well as Customs Tariff Act. Hence, both are to be treated as same even under Sales Tax Law.
Facts- The present revisions have been filed against the judgement & order passed by Commercial Tax Tribunal, Ghaziabad in Second Appeal No. 588/2018 for the Assessment Year 2008-09 under the VAT Act, in which the question of law that whether on the facts and circumstances of the case, the Commercial Tax Tribunal was legally justified in treating the ‘Bakery Shortening’ and Vanaspati (Hydrogenated Vegetable Oil) as one and the same commodity and is taxable @ 4% under the Entry No. 130 of Schedule II, Part – A of the U.P. VAT Act, 2008?
The Assessing Authority has rejected the claim of 4% tax on the ground that the items are different from vegetable oil (Vanaspati Ghee) and therefore not covered by a specific entry.
Conclusion- Any goods, which is not in conformity with the “Vanaspati”, cannot be treated as ‘Bakery Shortening’. In other words, it is essential that ‘Bakery Shortening’ be in conformity with the ‘Vanaspati”. It is clearly evident that the chemical and physical properties of “Vanaspati’ and “Bakery Shortening” are one and the same; hence, by any stretch of imagination, they cannot be treated as two different items.
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