M/S. SARADA TRADING Vs. STATE OF TRIPURA

JUDGEMENT

(1.) This petition is directed against the order of the Commissioner of Taxes dated 14.08.2008, whereby he dismissed the appeal of the petitioner-assessee and upheld the order dated 31.12.2007, whereby the assessee was held liable to pay tax @ 12.5% alongwith interest and penalty was also imposed upon him. Briefly stated the facts of the case are that the assessee is a dealer and sells insecticides which are meant for spraying within domestic household to repel/kill mosquitoes, flies, cockroaches etc. The assessee wrote a letter to the Superintendent of Taxes concerned on 22nd June, 2005. In that letter he stated that whereas insecticides were to bear tax @ 4%, mosquito and insecticide repellents were exigible to tax @ 12.5%. According to the assessee there is no mention in the list about spray items and therefore he sought a clarification whether his items came under the group of 'insecticides' or under the group of 'mosquito repellents'. Admittedly, no reply to that letter was given. But, later on the Department on 7/10th July, 2007 clarified that tax was leviable @ 12.5%.

(2.) In the present petition we are dealing with the assessment year 2005-06. Sri Saha, learned counsel for the petitioner contends that once the petitioner had sought for a clarification and no clarification was given, the assessee collected tax from the customers only @ 4%. Therefore, it would be unjust to make him liable to pay tax @ 12.5%.

(3.) Entry No. 29 in Schedule II(a) of the Tripura Value Added Tax Act, 2004 (for short 'TVAT Act') reads as follows: