October 2011
(2011) 39 VST 302 (Bom.) Commissioner of Sales Tax, Maharashtra State, Mumbai v. Cadila Healthcare Limited
By C. B. Thakar | Advocate
G. G. Goyal, Janak Vaghani | Chartered Accountants
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Rate of tax — Table margarine — Not hydrogenated vegetable oil or vegetable oil — Taxable at 12.5% under residual Entry E-1 — Schedule Entry C-100, 102 and E-1 of Maharashtra Value Added Tax Act, 2002.
Facts:
The Commissioner of Sales Tax filed appeal against the decision of the Tribunal, dated August 2, 2008, holding that Nutralite table margarine sold by the dealer is covered by Schedule C-Entry 102 of the MVAT Act and taxable at 4%. Entry 100 of Schedule C covers vanaspati (hydrogenated vegetable oil), whereas Entry 102 of Schedule C covers vegetable oil. It was argued before the Tribunal by the dealer that Nutralite table margarine is vanaspati and if it is not vanaspati, then it is vegetable oil covered by Schedule Entry C-102 taxable at 4%. The Tribunal held that Nutralite table margarine is vegetable oil taxable at 4% under Entry 102 of Schedule C of the MVAT Act. The High Court allowed the appeal filed by the Commissioner of Sales Tax and held against the dealer that Nutralite table margarine is not vanaspati and not a vegetable oil and taxable at 12.5%.
Held:
(i) Margarine is used for baking, cooking and Nutralite table margarine sold by the dealer is used for cooking and as a spread. Palm oil is subjected to process of emulsification and the resultant product that emerges is Nutralite table margarine. Admittedly, table margarine is considered to be a distinct marketable commodity under the Central Excise Act.
