Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Kerala VAT Act Principles of classification 2003 s. 6(1)(d) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Kerala Value Added Tax Act, 2003 (30 of 2004) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Kerala VAT Act, 2003 – s. 6(1)(d), Entry No.44(5)of the III Schedule – Entry 27(4) and 66 of notification SRO 82/06 – Appellant’s case that the products (i) Mosquito Mats, Coils and Vaporizers; and (ii) Mortein Insect Killers; (iii) Harpic Toilet Cleaner and Lizol Floor Cleaners were classifiable under Entry No. 44(5) of the III Schedule to the Kerala VAT Act as being ‘pesticides, insecticides’ corresponding to HSN Code 3808 and therefore subject to VAT at the rate of 4% – With respect to the product at (iv) Dettol Antiseptic Liquid, it was the case on behalf of the appellant that ‘Dettol Antiseptic Liquid’ is correctly classifiable under Entry 36(8) (h) (vi) being medicaments corresponding to HSN Code 3004.90 of the III Schedule, and thus also subject to tax at the rate of 4% – Held: It is required to be noted that HSN Code 3808 has been deleted from Entry 44(5) w.e.f. 01.07.2006 and from 21.01.2006 the aforesaid products would fall under Sl. No.66 namely ‘Mosquito repellant’, which is the specific entry and subject to VAT at 12.5% – Therefore, Mosquito Mats, Coils and Vaporizers and Mortein Insect Killers products shall not be classifiable under Entry 44(5) as insecticides – Further, after introduction of SRO 82/06 w.e.f. 22.01.2006 the Harpic and Lizol would fall under Sl. No. 27(4) of SRO 82/06. Sl. No.27(4) thus is a specific entry – What is required to be considered is the dominant use which is cleaning and removal of stains of floor and the toilet – Thereafter, the same shall not fall under Entry 44(5) – HSN Code No.3808 as insecticides or disinfectant – Entry 27(4) of SRO No. 82 of 2006 is with respect to stain busters, stain removers, abir, blue and all kinds of cleaning powder and liquids including floor and toilet cleaning – Therefore, Harpic and Lizol shall not be classifiable under Entry 44(5) and shall be classifiable under Entry 27(4) of SRO 82/2006 chargeable to tax at 12.5% – As far as (iv) Dettol Antiseptic Liquid is concerned, Dettol is used as an antiseptic and is used in hospitals for surgical use, medical use and midwifery due to therapeutic & prophylactic properties the same would fall under Entry 36(8) (h) (vi) as claimed by the appellant.Interpretation of Statute – Principles of classification which are fundamental to any matter relating to classification under the taxing statute are: (a) Plain meaning to be given to the taxing provision; (b) burden to prove classification in a particular entry is always on the Revenue; (c) any ambiguity has to be resolved in favour of the assessee and in case of a reasonable doubt, the construction most beneficial to the assessee must be adopted; (d) specific entry would override a residuary entry; and (e) resort to residuary entry is to be taken as a last measure, only when by liberal construction the specific entry cannot cover the goods in question. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 328 |
Petitioner | M/s Reckitt Benckiser (india) Ltd. |
Respondent | Commissioner Commercial Taxes & Ors. |
SCR | [2023] 4 S.C.R. 63 |
Judgement Date | 2023-04-10 |
Case Number | 1335 |
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