STATE OF UTTARAKHAND, THROUGH ITS PRINCIPAL SECRETARY, FINANCE, DEHRADUN Vs. NESTLE INDIA LTD
HIGH COURT OF UTTARAKHAND
State Of Uttarakhand, Through Its Principal Secretary, Finance, Dehradun
NESTLE INDIA LTD
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PRAFULLA C.PANT, J. -
(1.) THIS appeal is directed against the order dated 23.03.2010,
passed by learned Single Judge, of this Court in writ petition (M/S) No.
1581 of 2009, whereby said Court has allowed the writ petition and the Circular dated 30.05.2009, issued by the Commissioner of Taxes,
Uttarakhand, has been quashed. By said Circular Letter the departmental
authorities were directed not to treat sauces like tomato sauce etc.
under entry 6 of Schedule II B of Uttarakhand Value Added Tax Act, 2005.
(2.) HEARD learned counsel for the parties.
(3.) BRIEF facts of the case are that the present respondent/assessee was served with a show cause notice dated 19.06.2009,
by the Assessing Authority in the light of the Circular Letter dated
30.05.2009, issued by Commissioner of Taxes, Uttarakhand, as to why, commercial tax at the rate of 12.5% be not charged on the tomato sauce
sold in the Assessment
year 2005 -06. In response to said notice petitioner submitted its
reply on 29.06.2009, claiming that the item was not taxable at the rate
of 12.5%. It was also pleaded by the assessee that the tomato sauce is
the item covered under entry No. 6 of Schedule - II B of Uttarakhand Value
Added Tax Act, 2005 (for short VAT Act). The said entry coveres all
processed and preserved vegetables, besides vegetable mushrooms and
fruits including fruit jams, jellies, fruit squash, paste, fruit drinks
and fruit juices and achar (whether in sealed container or otherwise).
However, the Assessing Authority did not accept the contention of the
assessee and charged the tax under the category of unclassified items.
The basis of charging the tax at the rate of 12.5% was the Circular
Letter dated 30.05.2009. It appears that aggrieved by said order dated
08.07.2009, passed by Assessing Authority (Deputy Commissioner, Assessment Commercial Taxes, Rishikesh), the assessee filed writ petition
No. 1581 of (M/S) of 2009, challenging the Circular Letter dated
30.05.2009, alongwith the order passed by the Assessing Authority.
Learned Single Judge, after hearing the parties, allowed the writ petition vide impugned order dated 23.03.2010, and the quashed the
Circular Letter. It is further directed that VAT at the rate of 12.5%
shall not be realised from the petitioner. Hence this appeal by the
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