CLASSIC SPECES PVT LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) The first question raised in the Revision filed by the assessee pertains to rate of tax on sambar powder, meat masala powder, rasam mix and pickle mix powder. Even though assessee raised a specific claim that all the items fall under entry 32 of First schedule to the KGST Act at the relevant time taxable at the rate of 4%, the assessing officer assessed the items under residuary entry at 8%. The assessee's appeal; was allowed by the first appellate authority declaring eligibility for assessment under entry 32 at 4% which was reversed by the Tribunal restoring the assessment, against which this revision is filed.

(2.) We have heard counsel appearing for the petitioner assessee and Government Pleader appearing for the respondent. Entry 32 at the relevant time was as follows:

(3.) The next question raised is with regard to rate of tax on turmeric powder. Turmeric at the relevant time was covered by entry 138 which was taxable at 4%. Even though turmeric powder was not specifically covered by the entry through explanation introduced by Finance Act 2000, with effect from 01/04/2000, turmeric powder was also brought along with turmeric under the renumbered entry 159. Counsel for the petitioner contended that explanation is clarificatory in nature and so much so turmeric as contained in the original entry includes its powder as well. We find force in this contention because when forms of turmeric are not described, it is possible to contend that turmeric in all its forms are covered by the entry 'turmeric'. Department has no case that item sold is anything other than turmeric powder which is powder form of turmeric without any value of addition and so much so we feel the explanation introduced serves only as clarification to the original entry and therefore turmeric powder even before the introduction of explanation is covered by entry 138 taxable at 4%. In any case turmeric powder cannot be assessed under residuary entry because spices powder was covered under entry 32 and turmeric falls under the category of spices, though it is specifically covered by another entry in the Schedule. Therefore alternatively it is possible to contend that turmeric powder is a spice powder attracting same rate of tax of 4% as claimed by the petitioner under entry 32. Above all we find that entry 32 is generally exhaustive in nature which covers almost all forms of curry powder, spices powder, etc. Therefore wherever any spice powder is not specifically covered by another entry, that will fall under entry 32 which is a residuary entry for all spices in powder form. Consequently we answer this question also in favour of the assessee and against the revenue.