Vineet Kothari, J. - (1.) These three revision petitions are directed against the order of the Tax Board dated 2.12.2004 whereby the Tax Board upholding the order of the first appellate authority i.e. Deputy Commissioner (Appeals) dated 1.10.2002 held that 'Gulab, Chandan and Badam Sharbat' manufactured by the respondent-assessee under the license obtained by it under the provisions of Drugs and Cosmetics Act, 1941 are taxable @ 6% as Ayurvedic medicine and not @ 12% as 'non-alcoholic potable liquid'.
(2.) The assessing authority by resort to Section 30 of the R.S.T. Act, which empowers the assessing authority to reassess the escaped turnover, imposed tax @ 12% on the sale of 'Gulab, Chandan and Badam Sharbats' manufactured by the assessee whereas the assessee had shown the same as taxable only @ 6% and was assessed accordingly in the original assessments. The first appeal filed by the assessee against such re-assessment order was allowed by the learned Deputy Commissioner (Appeals) vide its order dated 1.10.2002 and the said order was upheld by the learned Tax Board as well by the impugned order dated 2.12.2004. Both the appellate authorities have held that these three special types of 'Sharbats' produced with the ingredients as per prescribed Ayurvedic literature under the license obtained by the assessee under the Drugs and Cosmetics Act had medicinal value and they not only help the consumer of the same in giving the cool effect in the heart and head but also prevented various diseases of stomach and head as per the Ayurvedic literature and the same were prepared according to the formulae given in Ayurvedic literatures and therefore, taxable only 6% as Ayurvedic medicine. The revenue has filed these revision petitions being aggrieved by the said order of the Tax Board.
(3.) Mr. Arnit Ratnawat for Mr. R.B. Mathur, learned counsel appearing for 1 the petitioner-revenue, urged that the sale of the 'Sharbats' by the assessee during the relevant periods i.e. 1994- 95, 1996-97 and 1996-97 was taxable @ 12% under Entry No. 72 of notification dated 27.3.1995 (S. No. 968 : F.4(11) FDGr.IV/95- 49). Entry 72 reads as under : "All kinds of eatables and non-alcoholic potable liquid such as fruit 1 syrups, distilled juices (ark), Jams (Chatnies, Murabbas), Fruit Juices, Essences, Gulkand, Concentrates, Cornflakes and Wheat flakes, Custard powder, Baking Powder and Ice-Cream Powder.'' ;