Court Decisions on Product Classification and Taxation under U.P. VAT Act

The court affirmed the classification of 'Parachute Coconut Oil' as edible oil under Entry 43 of Schedule II Part A of the U.P. VAT Act, taxed at 4%. 'Medikar' was classified as a medicine due to its medicinal effect for anti-lice treatment. 'Revived Instant Starch' was categorized as starch under Entry 118, regardless of edibility, and taxed accordingly. The court upheld previous judgments, dismissing the trade tax revision based on settled legal interpretations.

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Issues Involved:
1. Classification of 'Parachute Coconut Oil'
2. Classification of 'Medikar'
3. Classification of 'Revived Instant Starch'

Issue-wise Detailed Analysis:

1. Classification of 'Parachute Coconut Oil':
The primary issue was whether 'Parachute Coconut Oil' should be classified under 'oil of all kinds' or 'hair oil'. The Tribunal had previously classified it under 'oil of all kinds', but the High Court in the case of M/s The Bombay Oil Industries (P) Limited vs. The Commissioner of Trade Tax, Uttar Pradesh, had already determined that 'Parachute Coconut Oil' should be taxed as 'hair oil'. The court reaffirmed that 'Parachute Coconut Oil', marketed as edible, should be classified as edible oil under Entry 43 of Schedule II Part A of the U.P. VAT Act, 2008, and taxed at 4%, not as an unclassified item taxable at 12.5%.

2. Classification of 'Medikar':
The second issue was whether 'Medikar' should be classified as a medicine. The Tribunal had classified 'Medikar' as a medicine, and this classification was upheld by the Hon'ble Apex Court, which stated that 'Medikar', used for anti-lice treatment, is a drug due to its medicinal effect and cannot be classified as a shampoo. The court cited the label and composition of 'Medikar', emphasizing its use in treating lice infestation, which causes diseases, thereby affirming its classification as a medicament.

3. Classification of 'Revived Instant Starch':
The final issue was whether 'Revived Instant Starch' should be classified under 'starch'. The Tribunal had classified it under 'starch', and this was supported by the court's previous judgment in TTR No. 153 of 2011. 'Revived Instant Starch' contains 97% tapioca starch and 3% other chemicals. The court held that the classification of starch in Entry 118 of Schedule II Part A does not distinguish between edible and non-edible starch. Therefore, 'Revived Instant Starch' falls under the category of 'starch' and should be taxed accordingly. The principle of ejusdem generis was rejected as it was not shown that Sago and Sabudana exist in inedible forms.

Conclusion:
The court concluded that the issues in question had already been settled by previous judgments of the High Court and the Hon'ble Apex Court. The questions of law framed in the present revision were answered in accordance with these judgments, leading to the dismissal of the trade tax revision.

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