STATE OF KERALA Vs. JYOTHY LABORATORIES LTD

JUDGEMENT

(1.) These revision petitions have been filed by the State of Kerala aggrieved by the orders passed by the Kerala Value Added Tax Appellate Tribunal in its order in T.A.(VAT) Nos. 272/2008 and 314/2008.

(2.) The facts which led to the filing of these revision petitions are that the Respondent herein, M/s. Jyothy Laboratories Ltd., a manufacturer and dealer of detergents, whiteners etc., are also manufacturing and dealing in products known as "Ujala Supreme" and "Ujala Stiff and Shine". In respect of Ujala Supreme, in the returns filed for the year 2005-06, the Assesses collected and paid tax on the sales turn over for the month April and May 2005 @12.5% and for the subsequent period @4% only. In so far as Ujala Stiff and Shine is concerned, the product was launched in June 2005 and 4% tax was collected and paid.

(3.) The Assessing Officer issued Annexure A notice under Section 22(3) of the KVAT Act, on the basis that the aforesaid products of the Assesses were laundry brighteners and proposing to classify the products under Entry 27 of SRO 82/2006 tax and levy tax @12.5%. On receipt of the notice, the Assesses filed its objections contending that Ujala Supreme is the brand name under which it is marketing "Acid Violet" a Synthetic Organic dye, classified under HSN Code 3204.12.94, and that the same was used as a fabric whitener. Similarly, with respect to Ujala Stiff and Shine also, it was contended to be a brand name, under which Vinyl Acetate diluted in water which is used as a fabric stiffner and classified under HSN Code 3905, was marketed. According to the Respondent, applying the Rules of Interpretation of Schedules to the Act, the products are liable to be assessed only @4%, these being covered by Entry Nos. 155(8)(d) and 118(5) of the list A to the 3rd Schedule.