STATE OF UTTARAKHAND THROUGH ITS PRINCIPAL SECRETARY FINANCE DEHRADUN Vs. NESTLE INDIA LTD
LAWS(UTN)-2012-6-26
HIGH COURT OF UTTARAKHAND (AT: NAINITAL)
Decided on June 05,2012

STATE OF UTTARAKHAND Appellant
VERSUS
NESTLE INDIA LTD. Respondents

JUDGEMENT

- (1.) This appeal is directed against the order dated March 23, 2010 Nestle India Limited v. State of Uttarakhand, 2010 31 VST 404 passed by the learned single judge, of this court in Writ Petition (M/S) No. 1581 of 2009, whereby the said court has allowed the writ petition and the circular dated May 30, 2009, issued by the Commissioner of Taxes, Uttarakhand, has been quashed. By the said circular letter the Departmental authorities were directed not to treat sauces like tomato sauce, etc., under entry 6 of Schedule IIB to the Uttarakhand Value Added Tax Act, 2005. Heard learned counsel for the parties.
(2.) The brief facts of the case are that the present respondent/assessee was served with a show-cause notice dated June 19, 2009, by the assessing authority in the light of the circular letter dated May 30, 2009, issued by the Commissioner of Taxes, Uttarakhand, as to why commercial tax at the rate of 12.5 per cent be not charged on the tomato sauce sold in the assessment year 2005-06. In response to the said notice the petitioner submitted its reply on June 29, 2009, claiming that the item was not taxable at the rate of 12.5 per cent. It was also pleaded by the assessee that tomato sauce is the item covered under entry No. 6 of Schedule IIB to the Uttarakhand Value Added Tax Act, 2005 (for short, "the VAT Act"). The said entry covers 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 per cent was the circular letter dated May 30, 2009. It appears that the aggrieved by the said order dated July 8, 2009, passed by the assessing authority (Deputy Commissioner, Assessment Commercial Taxes, Rishikesh), the assessee filed Writ Petition No. 1581 (M/S) of 20091, challenging the circular letter dated May 30, 2009, along with the order passed by the assessing authority.
(3.) The learned single judge Nestle India Limited v. State of Uttarakhand, 2010 31 VST 404after hearing the parties, allowed the writ petition vide impugned order dated March 23, 2010, and quashed the circular letter. It is further directed that the value added tax at the rate of 12.5 per cent shall not be realised from the petitioner. Hence this appeal by the Revenue.;


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