EUREKA FORBES LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) THE question arising in both the Tax Revisions filed by the assessee is about the classification of their product water filter cum purifier sold under the brand name Aqua Guard. While the case of the assessee is that the item is electrical apparatus, and therefore falls under Entry 48 of the First Schedule to the KGST Act during the relevant year, the case of the department is that the item is water filter falling under Entry 104 of the first Schedule to the Act. Even though the rate of tax provided under the First schedule for both the Entries is the same, namely, 12. 5 per cent, the issue cropped up because of the reduction in rate of tax granted by the Government in respect of electrical goods under Government Notification reducing the rate from 12. 5 per cent to 10 per cent.

(2.) IN order to appreciate the contentions, we have to refer to both the Entries which are extracted hereunder: Entry 48: Electrical goods (other than those specifically mentioned in this schedule), instruments, apparatus, appliances, grinders, cooking ranges, hot plates, water heaters and other domestic electric appliances and apparatus including fan & lighting bulbs, electrical earthen-ware, porcelain and all other accessories and component parts, either sold as a whole or in parts. At the point of first sale in the State by a dealer who is liable to tax under under Sec. 5 12. 5% Entry 104: Pressure cooker, cook and serve ware to keep food warm casseroles, water filters and similar home appliances not coming under any other entry in this Schedule or in the Fifth Schedule. At the point of first sale in the State by a dealer who is liable to tax under Sec. 5 12. 5%