TaxTMI 
TaxTMI 
2013 (5) TMI 756
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.... the Appellate Tribunal, Value Added Tax in two appeals being Appeal Nos. 1106-1107/ATVAT/12-13 relating to the assessment period 2007-08. The appellant, before us, had filed those appeals before the Tribunal being aggrieved by the orders passed by the Special Commissioner-I (Appeals) whereby an additional demand of Rs. 7,21,35,255/- was raised and penalties totaling Rs. 9,26,86,645/- had been imposed. One appeal was in respect of the additional demand and the other appeal was in respect of the penalties. 2. By virtue of the impugned order passed under Section 76(4) of the said Act, the Tribunal has directed the appellant to deposit 20% of the disputed amount as a pre-condition for hearing the appeals. The learned counsel for the appella....
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....wax used for manufacture of candles); (x) Mixture and combination of above products The Third Schedule (See Section 4) List of Goods Taxed at 4% Sl. No. COMMODITY 1 ... ... ... ... ... ... ... ... 120 Paraffix wax of all grades/standards other than food grade standards including standard wax and slack wax." 4. It is the contention of the appellant that Entry No. 120 of the Third Schedule was introduced with effect from 11.05.2005. Prior to that there was no specific Entry with regard to Paraffin wax. As such, prior to 11.05.2005, Paraffix wax was covered under the general Entry No. 1(ix) of the Fourth Schedule which dealt with wax in general. On and from 11.05.2005, since there was a specific En....
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.... On the contrary, the learned counsel for the respondent submitted that only Paraffin wax which is used for the manufacture of candles would fall within Entry No. 120 of the Third Schedule. Since the appellant was not able to demonstrate before the Tribunal that the Paraffin wax produced by it and sold by it was exclusively for the purpose of manufacture of candles, the appellant cannot take advantage of Entry No. 120 of the Third Schedule. It was, therefore, contended by the learned counsel for the respondent that the appellant's product Paraffix wax was clearly covered under Entry No. 1(ix) of the Fourth Schedule. Therefore, the revenue contended that rate of tax would be 20% and not 4%. 7. We also note from the impugned order that the....
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....of the interest of Revenue, we are of the considered view that ends of justice will be fully met if the appellant is directed to deposit 20% of the amount in dispute in each of the appeals as condition precedent for hearing the appeals on merit. Appellant is directed accordingly. Appellant shall deposit the amount within a period of 30 days; and on showing proof of compliance thereof to the Registry, appeals shall be listed to be heard on merit on 28.03.2013." (underlining added) On going through the above extract, we are, prima-facie, of the view that the Tribunal has committed an error. This is so because the Tribunal took the prima-facie view that Entry No. 120 of the Third Schedule covers only 'certain grades / standards' of Paraf....