STATE OF KERALA Vs. M J JOSEPH

JUDGEMENT

(1.) The question raised in the seven connected cases filed by the State against the very same assessee is whether the VAT Appellate Tribunal was justified in holding that the products manufactured and sold by the respondent attract tax only at four per cent under entry 7 of the Third Schedule to the Kerala Value Added Tax Act as against 12.5 per cent assessed under entries 19 and 103 of SRO No. 82/2006 issued under section 6(1)(d) of the Kerala Value Added Tax Act. We have heard Government Pleader for the petitioner and advocate Sri Mayankutty Mather appearing for the respondent-assessee. The respondent is a manufacturer and seller of the products by name "fat paste cream and choco paste". The dispute raised is only with regard to rate of tax applicable to the product under the Kerala Value Added Tax Act. In order to identify the relevant entry under which tax is to be levied, we have to identify the product with reference to the ingredients used in the manufacture and the nature of use of the products. Accordingly we extract hereunder the product description and purpose:

(2.) We are told that the products are used mainly for making toffees, ice-creams, etc. Probably it can be used for making cream biscuits and according to counsel for the respondent, it can even be used as a dressing on bread for making toast.

(3.) The question to be considered is only classification of the above items for the purpose of levy of tax. The assessee's contention is that both the products are "confectioneries" falling under entry 7 of the Third Schedule to the KVAT Act, which is as follows: