Granite stone block and pieces taxable @ 5% under UPVAT

Commissioner Vs Neha Sharma (Allahabad High Court)

Introduction: In a landmark decision, the Allahabad High Court clarified the tax classification of granite stone blocks and pieces, bringing relief to dealers across the region. The case, Commissioner Vs Neha Sharma, revolved around the classification of granite stone under Entry No.109 of Schedule II Part A and its applicable tax rate under UPVAT. The ruling sheds light on the legislature’s intention and provides guidance for the interpretation of tax entries concerning stone materials.

Detailed Analysis:

The heart of the dispute lay in whether granite stone blocks and pieces should be taxed at 5% (including additional tax) under Entry No.109, which primarily includes materials like “sand, gitti, bajri, kankar, stone ballast, stone,” or at a higher rate of 14.5% as unclassified items. The revenue’s stance was that Entry No.109 did not explicitly mention granite stone, hence it should be taxed at the higher rate.

Please become a Premium member. If you are already a Premium member, login here to access the full content.