TaxTMI 
TaxTMI 
2011 (3) TMI 311
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....ince the issues involved in these appeals are identical, we propose to dispose of all these appeals by this common Judgment and Order. 3. In appeals arising out of SLP (C) Nos. 11358 of 2008 and 15883 of 2008 the issue which falls for our consideration is as to whether Jaljira which is a product manufactured by the respondent herein is only an appetizer and is not a masala and therefore liable to sales tax at the rate of 10% and not 16%. In appeals arising out of SLP (C) Nos. 27432 of 2008 and 27433 of 2008 a similar question arises for consideration that as to whether Jaljira and similar other products are not Masala and therefore they are liable to be assessed to sales tax at the rate of 10% and not 16%. 4. In order to dec....
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....es the following : Sr. No. Detail of Goods Tax Rate 186 All kinds of eatables & non-alcoholic potable liquids such as fruit syrups, distilled juices, jams [chatni, murabbas], fruit juices, drink concentrates of all types and forms, essences, concentrates, corn flaks and wheat flakes, custard powder, baking powder, ice-cream powder and [multi-ingredient packed masala]. 16% A letter dated 12-11-2001 was issued by the Deputy Secretary, Finance Department, Tax Division, Government of Rajasthan to the Commissioner, Commercial Taxes Deptt, Rajastiian, Jaipur, which reads as follows : "...............I am to state that "Packed Masala" used in entry number 184 means, a Masala where two or more ingredients are mixed and sold ....
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....ferred to by the officer on record indicating that the assessee itself described the product Jaljira as Masala. That is how the product is described in the bill books of sale, even for the assessment year 2001-2002. 11. Placing reliance on all those facts the assessing officer held that the product manufactured by the assessee known and called as jaljira is a Masala falling under Entry 184. It is also undisputed fact in the present case that except for the assessment year 2001-2002 with which we are concerned, the respondent assessee is paying sales tax for subsequent assessment years for jaljira at the rate of 16% in view of the notification dated 22-3-2002 wherein it categorically sated that multi-ingredient packed masala would ca....
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....y the High Court under the impugned judgment and order. Feeling aggrieved the appellant filed the present appeals on which we heard learned counsel appearing for the parties and also perused the records. 15. In the impugned judgment and order passed by the High Court it was held that Jaljira cannot be termed as a Masala in itself, but it is a mixture of masalas and other materials, which can be used for digestion. The High Court therefore held that Jaljira is nothing but edible preparation ready for use either directly or after dissolving in water for human consumption and as it is not used as additional constituent in any food substance, therefore, it cannot be termed as packed masala. The aforesaid findings were arrived at by the ....
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....vied on sale of commercial commodities, therefore, individual spices could be termed as different commercial commodities. When they are grinded and mixed they give rise to a separate commercial commodity altogether which could be taxed separately. It is settled law that when one particular item is covered by one specified entry, then the Revenue is not permitted to travel to the residuary entry. If from the records it is established that the product in question could be brought under a specific entry then there is no reason to take resort to the residuary entry. There is no doubt that Jaljira is a drink. The contents of Jaljira is put into water and taken as digestive drink but when we look into the manner and method of preparation of the p....
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.... rate of 16% holding that the product manufactured by the respondent falls within the category of items included in Entry No. 184. 20. Therefore, appeals arising out of SLP (C) Nos. 11358 of 2008, 15883 of 2008, 27432 of 2008 and 27433 of 2008 are allowed and the judgment and order passed by the High Court is set aside. The order dated 15-3-2004 passed by the Tax Assessment Officer is restored. 21. Having held thus, we may now examine the facts of the appeal arising out of SLP (C) Nos. 4304 of 2009. In this appeal, we are concerned with the two financial years, namely, financial years of 1999-2000 and 2001-2002. The aforesaid discussion and the findings and the conclusions arrived at would also be applicable so far the produ....