UDAIPUR BEVERAGES Vs. COMMISSIONER OF COMMERCIAL TAX

JUDGEMENT

(1.) The appellant has filed this appeal being aggrieved by order dated 28.08.2017 passed by the M.P. Commercial Tax Appellate Board, Bhopal in Appeal No. A/413/CTAB/12 for the assessment period 01.04.2008 to 31.03.2009.

(2.) The issue before the Board, raised by the appellant, was as to whether the appellant was entitled to input tax rebate under Section 14 of the Value Added Tax (hereinafter referred to as 'the Act') in respect of the refrigerator/chiller that the appellant had given to the retailers for the purposes of storing and selling the aerated water, pulp based fruit drinks (maaza) and water manufactured by the appellant. The Board by the impugned order has held that the appellant is a manufacturer of aerated water, pulp based fruit drinks (maaza) and water and in such circumstances the refrigerator/chiller that he has given to the persons running the retail outlets are not entitled to be considered for input for rebate under Section 14 (4) of the Act, as they do not fulfill the necessary requirements prescribed therein.

(3.) The learned counsel for the appellant submits that the aerated water and pulp based fruit drinks (maaza) manufactured by the appellant cannot be sold without refrigeration and in such circumstances the refrigerator/chiller becomes a necessary part of the plant and machinery requisite and required for manufacture of the aerated water and pulp based fruit drinks (maaza) and, therefore, the Board has erred in law in denying input tax rebate to the appellant. The learned counsel for the appellant further submits that the Board has also erred in law in arriving at a finding that the refrigerator/chiller supplied by the appellant to the retailer is a 'gift' and, therefore, the appellant is not entitled to input tax rebate.