Case Law Details
Commissioner Vs Peethambra Granites Pvt Ltd (Allahabad High Court)
In a significant legal development, the Allahabad High Court has resolved a taxation dispute related to granite stones by upholding the Tribunal’s ruling. The court dismissed a tax revision petition that questioned the taxation slab for granite, providing clarity on the applicable tax rate.
The Allahabad High Court dismissed a tax revision petition filed for the determination of the taxation slab of granite stones. The revision petition was admitted based on the question of law regarding the taxation of granite stone blocks and pieces.
The issue for consideration before the Court was whether the items sold by the dealer should be taxable at 5% under entry no.109 of Schedule II Part A, as per a government notification, even though granite stone was not mentioned. The notification included sand, gitti, bajri, kankar, stone ballast, stone but not including glazed stone marble and marble chips.
A Single Bench of Justice Shekhar B. Saraf observed, “glazed stone, marble and marble chips have been specifically excluded from the definition of “stone” in Entry No.109. If the Legislature wanted to exclude granite stone, the same could have very well been done by the amendment carried out on March 31, 2011. It is my view that if one were to agree with the submission made by the revenue, one would have to exclude several items that would ordinarily be termed as “stone”, which is not permissible in law”
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