In Ordinary Parlance Coconut Cannot Be Termed A Vegetable & As Per The Present Suit Appellant Product Processes From Coconut is Used as A Toiletry and Not as Edible oil -High court of Patna
TITLE-M/s Marico Ltd. Vs The state of Bihar &Ors with M/s Marico Ltd.Vs The state of Bihar
DECIDED ON- 6/12/2023
+MA No.98/2015
CORAM- HON’BLE CHIEF JUSTICE & HON’BLE JUSTICE MR.RAJIV ROY
INTRODUCTION
As two appeal from the common order dated in 11/03/2005 of the commercial Taxes Tribunal in a Miscellaneous case and Rivision case were agitate the same issue as where the Hon’ble court uphold the order of the Tribunal and dismissed the appeals.
FACTS
As per the facts of the Case The Appellant a dealer under the provisions of The Bihar Value Added Tax Act,2005 approached the authority under section 77 for a ruling as a whether coconut oil sold by ut would be taxed at the rate of 12.5% as residuary item or at the rate of 4% as commodity coming within schedule III.The Authority order M.A No.98/2014 found that the invoice of the petitioner shows coconut oil having been sold along with soap, detergents etc.making it clear that what is sold by the petitioner is used as hair oil and not as an edible oil.The commissioner found that the lesser liability on edible oils and vegetables oils did not include hair oil and falls under the category of toiletries which have been taxed at a higher rate of 12.5% and the tribunal concurred with the said opinion by the common impugned order and also rejected the appeal filed from the order of assessment.The Question of law arising us as whether coconut oil sold by the assessee can be classified as an edible oil under entry 27 and in the teeth of the exclusion of coconut oil from entry 27,will it be possible for inclusion under entry 82 being vegetable oil,as the entries in schedule III existed in the relevant year.
THE COURT ANALYSIS AND DECISION
As per the Hon’ble court the court observed that the appellant in MOA does not clear as whether the oil manufactured or sold in the brand name of Parachute is an edible or hair oil and the contention is that the coconut oil which is manufactured and sold in the name of Parachute by the appellant is 100% pure coconut oil and also manufactures hair oil in the brand name of Parachute,Parachute Jasmine etc which can be distinguished from the one sold as 100% coconut oil.No Question of law arises from this aspect and the appellants product in the brand name of Parachute cannot be brought under the entry of edible oil and from 1/7/2005 onwards coconut oil is excluded fro the entry 27.Then another question arises as whether coconut oil can be considered to be a vegitable oil under entry 84.The Appellant counsel harped upon the customs and excise tariff based on HSN Codes.There is no link to HSN codes in the entries under the Act of 2005 and examination of the same is not permissible especially when the levy has to go by the separate enactments.The Hon’ble court analysis that In ordinary commercial parlance coconut cannot be termed a vegetable to which a product us out to looked at and as per the present case the product of the appellant processed from coconut is used as a toiletry and not an edible oil.Hence no stretch can the product of the appellant be termed as an edible oil or a vegetable oil and fully concur with the finding of the authority under section 77 and uphold the order of the tribunal and court answer the questions of law against the assessee and in favour of the revenue.The appeals stand dismissed.
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Written by- Prachee Novo Mukherjee
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