ULTRAMARINE AND PIGMENTS LTD. Vs. STATE OF ANDHRA PRADESH
LAWS(ST)-2011-9-1
SALES TAX TRIBUNAL
Decided on September 05,2011

ULTRAMARINE AND PIGMENTS LTD. Appellant
VERSUS
STATE OF ANDHRA PRADESH Respondents

JUDGEMENT

K. Ashok Babu, Chairman - (1.) Appeal:
(2.) ASSAILING the advance ruling rendered by the Authority for Clarification & Advance Ruling in CCT's Ref. No. A.R. Com/149/2006 dt. 14.11.2006 on the industrial input product 'ultra marine blue' commonly known as 'NEEL' under the residuary Schedule V of the APVAT Act, 2005 (hereinafter referred to as the Act) as incorrect, the appellant contends that the said product squarely falls under the broader group of 'pigments' classified at SL. No. 123 in G.O. Ms. No. 502 dt. 1.5.2006 issued by the Government of Andhra Pradesh and, therefore, the impugned ruling is not sustainable and needs to be revised. Concise Statement of the case: The appellant filed an application before the Authority for Clarification & Advance Ruling, seeking a clarification and advance ruling u/s. 67 of the Act read with Rule 66(2)(i) of the APVAT Rules, 2005, whether the product 'ultra marine blue' falls under HSN Code 3206.41.00 attracting tax @4% as an industrial input as referred to in G.O. Ms. No. 502 dt. 1.5.2006 and submitted copies of commercial sales invoices containing the description of 'ultra marine blue' and showing relevant HSN Code as 3206.41.00. However, the ld. Authority for Clarification and Advance Ruling has ruled that HSN Code was not notified for ultra marine blue by the Government as falling under 4% and, therefore, ultra marine blue with HSN Code 3206.41.00 will attract tax @ 12.5%. Aggrieved by such a ruling, the appellant has filed the appeal on hand with the contentions as narrated in para -1. Arguments: Relying on a decision of the Apex Court in TVL Nilsin Industries Vs. State of Tamil Nadu [2006 -07 (12) TNCTJ 183] G.O. Ms. No. 502 dated 1.05.2006, extracts of the product 'ultra marine blue' and 'ultra marine and preparation pigments etc., while the ld. Counsel for the appellant has contended that the product 'ultramarine blue' @ 'NEEL' squarely falls under the broader group of pigments classified at Serial 123 in G.O. Ms. No. 502 dated 1.5.2006, the ld. State Representative has tried to justify the impugned ruling on the basis of HSN Code 3206.41.00 not having been notified by the Government to attract tax @ 4 % and that in the absence of such a Notification it would attract tax @ 12.5%. Point for Consideration
(3.) WHETHER 'ultramarine blue' (pigment) with HSN Code 3206.41.00 attracts tax @ 4% as an industrial input, as referred to in G.O. Ms. No. 502 dated 1.5.2006 or HSN Code 3206.41.00 having not been notified by the Government of Andhra Pradesh for 'ultramarine blue' could it attract tax @ 12.5% as ruled by the Authority for Clarification and Advance Ruling in A.R. Com/149/2006 dated 14.11.2006? Reasons for Decision:;


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