LAWS(GAU)-2012-8-114

UNIVERSAL PIPES (P.) LTD Vs. STATE OF ASSAM

Decided On August 22, 2012
Universal Pipes (P.) Ltd. Appellant
V/S
State of Assam and Others Respondents

JUDGEMENT

(1.) THIS order will dispose of W.P. (C) No. 3344 of 2011, W.P. (C) No. 2103 of 2011, W.P. (C) No. 3343 of 2011, W.P. (C) No. 807 of 2012, W.P. (C) No. 3208 of 2012, W.P. (C) No. 2213 of 2011, W.P. (C) No. 2280 of 2011 and W.P. (C) No. 3848 of 2012. These petitions seek quashing of orders dated December 8, 2009 and May 6, 2010, issued by the Commissioner of Taxes, Assam, Guwahati under section 105 of the Assam Value Added Tax Act, 2003 regarding taxability of PVC granules and PVC resins by treating the same as being covered by entry 51 of the Schedule to the Assam Entry Tax Act, 2008, i.e., "chemicals".

(2.) THE case of the petitioner is that they are manufacturing PVC pipes, fittings, casting pipes, etc., by using PVC granules and PVC resins, apart from other raw materials. The raw material is brought to the State of Assam from outside thereby attracting the provisions of the Entry Tax Act. Under the said Act, the Schedule of taxable items includes "chemicals" under entry 51. According to the petitioners, the said expression did not cover the raw material items imported by the petitioners mentioned above. The issue came up for clarification under section 105 of the Act and it was held that PVC granules and PVC resins were covered by the expression "chemicals". The said view was reiterated by further order on review application. Following this view, assessment has been made in some cases. According to the petitioners, the view taken is not legally tenable. On application of common parlance test or the user test, which are applied for determining the scope of entry in a fiscal statute, the impugned orders are liable to be quashed.

(3.) THE Commissioner in the impugned order observed :