SUNDEK INDIA LIMITED Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) IN W.P. Nos.20474 to 20476 of 2008, the petitioners have prayed to quash the clarification issued by the Commissioner of Commercial Taxes dated 30.5.2008, enhancing the rate of tax to 16% from 10% for the paper based laminated sheets.

(2.) IN all other Writ Petitions, the prayer is to quash the show cause notices/re-assessment orders, issued for re-assessing the tax, at the rate of 16% based on the clarification of the Commissioner of the Commercial Taxes, dated 30.5.2008.

(3.) IT is further stated in the counter affidavit that while manufacturing paper based decorative laminated sheets, the paper used in the manufacturing process as raw material completely disappears on the creation of altogether new products and therefore there is no nexes or relation with either paper or board. The law having been declared by the Supreme Court, though under the Central Excise Taxation Tariff Act, 1985, the interpretation given by the Supreme Court equally applies to the paper based laminated sheets, which is being sold by the petitioners and therefore the clarification issued by the first respondent is valid and the second respondent is entitled to reassess the assessments already completed and entitled to demand the difference in tax i.e., from 10 to 16%.