SHRIYA ENTERPRISES Vs. COMMISSIONER, COMMERCIAL TAXES, UTTARAKHAND

JUDGEMENT

(1.) Heard Mr. Bharat Ji Agarwal, the learned senior counsel duly assisted by Mr. Ashish Joshi, the learned counsel for the revisionist and Mr. Sudhir Kumar, the learned brief holder for the respondent-Department. The present revision relates to assessment year 2006-07 under the Uttaranchal Value Added Tax Act, 2005 (hereinafter referred to as, "the Act"). The revisionist is a registered dealer under the Act and had purchased potato chips/potato wafers from M/s. Pepsico India Holdings Pvt. Ltd. According to the revisionist, the selling registered dealer, namely, Pepsico India Holdings Pvt. Ltd., had been subjected to tax on the sale of potato chips while selling it to the revisionist at four per cent. The assessing authority, while passing the assessment order, accepted the books of account of the revisionist, including the purchases made by the revisionist but, instead of levying the tax on the sale of potato chips made by the revisionist at four per cent, has levied it at 12.5 per cent.

(2.) According to the revisionist, the tax could have only been levied at four per cent and not at 12,5 per cent. The revisionist, being aggrieved, filed an appeal before the Joint Commissioner (Appeals), Commercial Tax, Dehra-dun, which was dismissed by an order dated November 19, 2010. The Joint Commissioner (Appeals) held that the potato chips was not covered by entry No. 6 of Schedule 11(B) of the Act and was consequently liable to tax at 12.5 per cent. The revisionist, being aggrieved, filed a second appeal under section 53 of the Act before the Commercial Tax Tribunal, Dehra-dun, which was also dismissed by an order dated May 9, 2011. The revisionist, being aggrieved by the aforesaid orders, has filed the present revision under section 55 of the Act.

(3.) The question, which has to be decided in the present revision is, whether potato chips is a processed vegetable or not, and consequently liable to be taxed at four per cent or at 12.5 per cent.