HINDUSTAN LEVER LTD., CUTTACK Vs. STATE OF ORISSA

JUDGEMENT

(1.) The following four questions of law were framed by this Court while admitting this revision petition by the Assessee on 10/7/2006:

(2.) The first question is an issue concerning classification. The case of the Assessee is that the product in question i.e. 'huggies', which are actually diapers, falls under Entry 84 of List C of Schedule to the Orissa Sales Tax Act, 1947 which reads "Hosiery goods and Readymade garments" and are exigible to 4% sales tax.

(3.) In rejecting such contention, the Assistant Commissioner of Sales Tax (ACST), Cuttack has noted that another product of the Assessee, 'kotex', which is a sanitary napkin, has been treated as such and classified as falling under the residual entry making it exigible to 12% tax. The ACST has concluded that given the nature of the function performed by the diapers i.e. huggies, they would be no different from sanitary napkins inasmuch as, they are meant to absorb body fluids.