Case Law Details
Pesticides and Chemicals used in Pest Control Service cannot be subjected to Value Added Tax
In a recent judgment dated 22.09.2016, rendered in the case of State of Gujarat v/s Bharat Pest Control, the Gujarat High Court has held that pesticides and chemicals used in pest control service cannot be subjected to value added tax.
The submissions made in this regard by the ld. counsel appearing for the revenue were recorded as under :
Para 5. Learned AGP submitted that the title in goods passed from the assessee to the Reliance Petroleum. The term ‘sale’ contained in section 2(23) of the VAT Act would cover such a situation and the transaction would therefore, be exigible to tax. Mere registration of the assessee for the purpose of service tax would not be conclusive. The Tribunal committed a serious error in holding that since the goods were consumable, no title passed in favour of the purchaser.
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