De-oiled paddy husk

[Ganeshan Kalyani]

Dear Expert,

Recently the item 'paddy husk' is classified under schedule entry 62 of Schedule-II taxing @ 5%. Previously it was classified under Schedule-I as exempt. the wording was 'de-oiled paddy husk or outer covering of paddy'.

I request to clarify that whether de-oiled paddy husk is different from paddy husk. Will de-oiled paddy husk will remain tax free and only paddy husk will be taxable.

Kindly clarify.

regards,

ganeshan

[YAGAY and SUN]

Dear Ganeshan,

It would be better to seek the clarification from the MVAT on the DDQs i.e. Determination of Disputed Questions on payment of Nominal Fees. MVAT do have such provision under Section 56 of the Act to clarify such matters.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

VAT classification ambiguity for de oiled paddy husk versus paddy husk; seek formal disputed questions determination for clarity.
Whether 'de oiled paddy husk' remains exempt while 'paddy husk' is newly taxable depends on construction of schedule descriptions; where ambiguity exists, seek an administrative determination under Section 56 (Determination of Disputed Questions) by following the prescribed disputed questions procedure and fee to obtain an authoritative clarification.