Case Law Details
State of Andhra Pradesh Vs Linde India Ltd. (Supreme Court)
The main issue under this appeal is whether ‘Medical Oxygen IP’ and ‘Nitrous Oxide IP’ are taxable under Entry 88 of Schedule IV of the Andhra Pradesh Value Added Tax Act 2005 or as “unclassified goods” under Schedule V . The classification of the two products determines the rate of tax to be levied on them – 4%/5% under Entry 88 or 12.5%/14% under Schedule V.
High court has presented as under regarding this case:
a) The decision of the Andhra Pradesh High Court in Inox Air, in so far as it held that Medical Oxygen IP and Nitrous Oxide IP are covered by the expression “similar articles” in Entry 88, is erroneous. Applying the principle of ejusdem generis, it cannot be said that gases are ‘similar articles’ to the other products specified in the entry.
b) The term ‘used for or in’ employed in Section 3(b)(i) qualifies only ‘substances’ and not ‘medicines’. Consequently, it cannot be used to broaden the scope of Entry 88.
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