- (1.) HEARD Ms Rashmi Tripathi, learned counsel for the applicant and Sri B.K. Pandey, learned Standing Counsel for the respondent. Both the above noted revisions were admitted on 12.8.2014 on the following questions of law : i.Whether Gambier is catechu liable to tax at the rate of 4% or it is an unclassified item liable to tax at the rate of 12.5% ? ii.Whether under the facts and circumstances of the case, the impugned order of the Tribunal is based on irrelevant material -
(2.) LEARNED counsel for the applicant submits that the applicant is engaged in purchase and sale of Gambier and certain other commodities. He deposited tax @ 4% treating Gambier as KATTHA (Catechu). However, the assessing authority vide order dated 19.10.2012 for the Assessment Year 2009 -10 assessed the sale turnover of Gambier as an classified item and accordingly levied tax @ 12.5% for the period 1.4.2009 to 31.5.2009 and @ 13.5% for the period from 1.6.2009 to 31.3.2010. She submits that Gambier is KATTHA. She submits that KATTHA is specified in Entry -68 of Part -A of Schedule -II to the U.P. Value Added Tax Act, 2008 (hereinafter referred to as the 'Act') liable to tax @ 4% and, therefore, sale turnover of Gambier is also liable to tax @ 4%.
(3.) IN support of her submission she relied upon some literature of a book namely, "Indian Forester" wherein it is mentioned that Catechu may be prepared from Gambier. She also relied upon a book of Chemistry and Technology in which it is mentioned that Gambier is obtained from leaves and twigs of uncaria plant. It is used in dyeing compound shed, for preservation of fishing nets and for tanning purposes. It may be used as an alternative raw -material to meet the demand for Catechu. On the basis of these materials, she submits that Catechu and Gambier both are one and the same commodity and, therefore, the Tribunal has committed as manifest error of fact to hold that the Gambier is not KATTHA and, therefore, is liable to tax as an unclassified item. Sri B.K. Pandey, learned Standing Counsel submits that Gambier and Catechu both are entirely different commodities. Gambier is a non edible commodity, while Catechu is an edible commodity. He submits that both the commodities are different in nature and are differently known in common parlance. If anyone asks for Catechu, he shall not give Gambier and vise -versa.;