Pidilite Industries Ltd Vs Commissioner of Commercial Tax And 2 Ors. And Others (Madhya Pradesh High Court)
Madhya Pradesh High Court held that steel grip insulating tape is an insulator and liable to be taxed under Entry 50 Part – II Schedule – II of the Madhya Pradesh Value Added Tax Act, 2002 [M.P. VAT Act] @ 5%. Accordingly, writ allowed.
Facts- The present writ petition has been filed by the petitioner under Article 226 of the Constitution of India assailing the legality, validity and propriety of the order dated 31.08.2010 passed by the Commissioner of Commercial Tax, Madhya Pradesh, Indore whereby the petitioners product “Steel Grip Insulating Tape” has been classified under the residuary entry in Entry No.1 of Part IV of Schedule II of the Madhya Pradesh Value Added Tax Act, 2002 attracting a higher rate of tax and has also challenged the consequential assessment notices issued thereafter by the respondent authorities for recovery of differential tax.
Conclusion- Since Entry 50, Part – II Schedule – II of the M.P. VAT Act is a specific entry for classification and levy of tax on an insulator, in view of the settled legal position that if there is a specific entry, in which commodity falls, then the classification under the general or residual entry should be avoided. Even if the commodity in question falls in both entries, then the entry beneficial or favourable to the assessee should be applied.
