VAT: Writ Court cannot decide on Classification of Goods, rules Calcutta HC [Read Order]

The Calcutta High Court (HC) has ruled that the writ court cannot decide on the classification of goods under Value Added Tax (VAT).

M/s. Ajay Saha, the petitioner has challenged the impugnedorder dated 18th May 2016 passed by the First Track Revisional authority dismissing the revision application in question filed by the petitioner against the order of the appellate authority treating the product of the petitioner as ‘rice bran’ and rejecting the claim of the petitioner that the said product was ‘tush kuro’ and that the same is a cattle feed.

While rejecting the claim of the petitioner, the revisional authority in its impugned order has discussed elaborately the nature of the product and has given its reason. It was held that in absence of anything to the contrary the item sold is treated as “rice bran” which is the raw material for extraction of rice bran oil and “rice bran”  is taxable.

Petitioner contends that his product is cattle feedand is not liable to be taxed but nowhere the particular product on which the petitioner wants exemption has been mentioned in the said schedule. The said schedule simply includes the cattle feed as an exemption from tax.

Justice Nizamuddin observed that there is no description of what will be the component or ingredients of cattle feed and this writ Court in exercise under Article 226 of the Constitution of India is not have the expertise to declare the product in question claimed by the petitioner either the same as ‘tush kuro’ or cattle feed. 

While dismissing the petition,the Court upheld the findings of the revisional authority and substitute the same by acting as an appellate authority. 

To Read the full text of the Order CLICK HERE

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