Insulated Glass is classifiable as 'Plain Glass-Panes', attracts 10% VAT: Allahabad HC [Read Order]

The Allahabad High Court has held that the product, insulated glass is classifiable as “Plain Glass-Panes”, attracting 10% of tax under the Uttar Pradesh VAT Act.

The department approached the High Court against the Tribunal order granting relief to the assessee, G.S.C. Toughened Glass wherein the Tribunal has allowed the assessee's appeal and held insulated glass manufactured and sold by the assessee to be falling in the general description of 'plain glass-panes' and therefore, excluded from Notification No. 1273 dated 25.4.2001 as amended from time to time. The Tribunal has held that the insulated glass has been held taxable as unclassified commodity @ 10%.

Earlier, the assessing authority had taxed both laminated as also insulated glass manufactured by the assessee @ 16% treating those commodities to be covered by the Notification entry "All goods and wares made of glass" under Notification No. 1273 dated 25.4.2001.

Justice Saumitra Dayal Singh observed that “against that assessment order, the assessee had preferred first appeal that came to be partly allowed vide order dated 28.2.2006. The commodity laminated glass was held to be excluded from the above noted notification entry. Accordingly, it was taxed @10% as an unclassified commodity. That decision of the first appeal authority attained finality inasmuch as the revenue never challenged the same. There is no discussion in respect of any commodity that may be known as toughened glass. That issue does not arise.”

Relying on a catena of decisions, the Court held that the glass screens are covered under the term 'plain glass-panes' appearing in the exclusionary clause of the taxing entries.

“Insofar as the present taxing entry is concerned, similar language has been employed by the legislature as was employed by earlier Notification dated 20.5.1976. Therefore, the interpretation made by this Court in M/s Hindustan Safety Glass Works, Allahabad (supra) would apply to the facts of the present case as well. It may be noted, under Notification No. 1273 dated 25.4.2001 only difference that has arisen is with respect to earlier existing notification entry 'hurricane lantern chimneys'. It has been replaced with 'all kinds of chimneys'. However with respect to exclusion of plain glass-panes from the scope of taxing entry pertaining to all goods and wares made of glass, there is no change,” the Court said.

Upholding the Tribunal order, the Court held that the “Tribunal has made sufficient discussion of manufacturing process of the insulated glass manufactured and sold by the assessee and on its use. Thus, it has also been found that insulated glass is nothing but double glazed dual sheet. It has then referred to its order in M/s Gurint India (Pvt.) Ltd. in Second Appeal No. 477 of 2004 and 478 of 2008, decided on 01.12.2004 to opine that DGDS was nothing but plain glass-panes.”

To Read the full text of the Order CLICK HERE

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The Commissioner Commericial Tax vs S/S G.S.C. Toughened Glass , 2022 TAXSCAN (HC) 541 , Nishant Mishra,Nishant Mishra,Yashonidhi Shukla