JAINENDRA KUMAR RANKA,J. - (1.) These petitions are directed against order dt 29.12.2004 passed by the Rajasthan Tax Board, Ajmer, where while the appeals filed by assessee were allowed, the appeals by revenue were dismissed. Since common issue is raised in the instant petitions, the same are decided by this common order.
(2.) Brief facts noticed are that the respondent assessee is a dealer / distributor of drugs and in addition to other drugs it sold candy, namely "Swad", and it being a Ayurvedic medicine, the assessee had paid tax @ 6%, however, the Assessing Officer was of the view that it is a confectionery item on which tax rate of 10% is applicable and accordingly issued show cause notice as to why the differential rate of 4% which is applicable on confectionery items, be not levied. It was submitted on behalf of the assessee that there is 97% of sugar in "Swad" and taking into consideration judgment of this court in the case of CTO v. Heeralal Murlidhar [STR 199/1988, decided on 2.7.1992], it is exempt and as per the formula written on the said candy, it consists of rock salt (senda namak), black salt (kala namak), citric acid (nimbu ka sat), pepper (kali mirch), cumin (jeera), carom seeds (ajwain), ginger powder (sonth) and long pepper root (piplamool), and after mixing all these ingredients including sugar, it is digestive and it is taken as a medicine. However, the AO was not satisfied and applied the rate of 10% and levied differential tax and interest.
(3.) The matter was assailed before the Dy. Commissioner (Appeals), who partly allowed the appeal granting relief on interest.;