MEGA ENTERPRISES Vs. STATE OF M P

JUDGEMENT

(1.) WITH consent heard finally. The petitioner who is engaged in the business of sale and purchase of grocery items has challenged the order dated 18.08.2011 passed under Section 70 of the MP. VAT Act, 2002 (for short VAT Act) by the Commissioner of Commercial Tax, Indore (for short the Commissioner) in Revision No.20/11/ 70/11.

(2.) SHORTLY stated, the petitioner in its return submitted before the Commercial Tax Officer (for short CTO) declared 'salt cake' as a type of salt and claimed exemption from tax on the basis of Entry No. 35 of the Schedule I of VAT Act providing salt to be under tax free goods. The petitioner's claim for treating 'salt cake' as type of 'salt' was rejected by the CTO vide order dated 24.06.2011 (AnnexureP-1).

(3.) SHRI Sumit Nema, learned counsel for the petitioner argued that under Section 70 of the VAT Act, the Commissioner was required to make an order determining the rate of tax. The Commissioner while determining the rate of tax has resorted to the residuary entry without making an attempt to find out as to whether the entry answers the description of the contents of the basic entry. He argued that the Commissioner has only taken into consideration the entry 'salt' without taking into consideration the other entries in which the 'salt cake' would be covered. Taking us to the impugned order of the Commissioner he pointed out that salt cake would certainly come under the Entries No.28, 36 and 175 of Serial No.55 of Schedule-II of VAT Act which pertains to 'industrial inputs and packing materials' providing for tax @ 4% upto 31.07.2009 and? 5% w.e.f. 01.08.2009.