Exemptions — Classification of goods — Sale of pan masala in single pouch having two parts — One containing tobacco and other containing pan masala — Sold under brand name ‘Double Maza’ — Is a single commodity — Exempt as pan masala containing tobacco, Entry 82 of Schedule I, West Bengal Sales Tax Act, 1985.

Exemptions — Classification of goods — Sale of pan masala in single pouch having two parts — One containing tobacco and other containing pan masala — Sold under brand name ‘Double Maza’ — Is a single commodity — Exempt as pan masala containing tobacco, Entry 82 of Schedule I, West Bengal Sales Tax Act, 1985.

The dealer sold an item under the brand name Double Maza in a single pouch having two parts — one containing tobacco and the other, ‘Pan Masala’ without containing tobacco. The dealer claimed exemption form payment of tax on sale of the above item considering it as a ‘Pan Masala’ containing tobacco, although sold in a separate part, without mixing with each other, but packed in single pouch, duly covered by entry 82 of Schedule I of The West Bengal Sales Tax Act, 1985. The assessing authority held it taxable under Schedule IV not treating it as ‘Pan Masala’ containing tobacco, being poured in a single pouch making two parts separately, but customer has no option to buy it separately and therefore the item was considered as taxable. The dealer filed writ petition before the Calcutta High Court against the decision of the West Bengal Taxation Tribunal.

Held:

 The disputed item manufactured by the dealer containing two separate folders, one for ‘Pan Masala’ and the other for tobacco, but not offered to sale separately, is really a ‘Pan Masala’ containing tobacco classified in Chapter 24 under the tariff heading 2404.49 of First Schedule of Excise Tariff, although the same is presented as unassembled or disassembled article which has the essential character of the complete or finished article. The High Court accordingly held it as covered by Entry 82 of First Schedule of the West Bengal Sales Tax Act, 1944 as such exempt from payment of tax and set aside the orders passed by the Taxation Tribunal and assessing authorities.