AB MAURI INDIA PVT LTD Vs. COMMISSIONER OF COMMERCIAL TAXES COMMERCIAL TAXES AND RELIGIOUS ENDOWMENTS DEPT EZHILAGAM, CHEPAUK CHENNAI

JUDGEMENT

(1.) Heard Mr.K.Govi Ganesan, learned counsel for the petitioner and Mr.K.Venkatesh, learned Government Advocate for the respondents.

(2.) The petitioner, who is a registered dealer on the file of the second respondent under the provisions of the Tamil Nadu General Sales Tax Act, 1959 and Central Sales Tax Act, 1956, is aggrieved by a clarification issued by the first respondent dated 01.08.2002.

(3.) The petitioner is engaged in the business of selling yeast, bread improver, bakery products, puff, poultry feed, Pan edible oil (cake gel made of vegetable oil) and has been paying taxes. It appears that the petitioner was directed to approach the Commissioner to get clarification regarding the rate of taxes for the various products dealt with by the petitioner and accordingly made an application before the first respondent on 13.05.2002. The petitioner explained the manufacturing process and ingredients of various products dealt by them. In this writ petition, the product which is involved is cake gel. The petitioner had been paying tax at the rate of 4% by classifying the product under Entry 68 Part B of the first schedule to the TNGST Act. Though the petitioner stated to have submitted substantial materials to show that the product Cake Gel is made out of Vegetable oil and their chemical composition is a combination of Propylene Glycol, glycerin and demineralized water with appropriate proportion, the respondent has, by the impugned clarification, held that the product is taxable at 12% under residuary entry No.40 in Part-D of the first schedule to the Act.