2013 (5) TMI 768

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....003 declaring that the item "Madhusudhan brand milk powder" containing added sugar and fat was not "skimmed milk powder" and hence not covered by entry 60 of Part A of the Second Schedule to the Act, providing for lower rate of tax. The case of the petitioner is that it is engaged in sale of milk powder called "Madhusudhan brand milk powder" which is skimmed milk powder covered by entry No. 60 of Part A of the Second Schedule to the Act and thus taxable at lower rate, i.e., at five per cent. In the common parlance the product is known as skimmed milk but the assessing authority for assessment years 2007-08, 2008-09 and 2009-10 made provisional assessment by holding that the product was not skimmed milk powder. The stand of the Department....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Thus if milk fat and sugar is added to skimmed milk powder, it will still remain skimmed milk powder. The submission of the petitioner is not justified as under the AVAT Act two separate category of milk powder is taken into account on the basis of their fat amount, i.e., milk powder with less fat is kept under five per cent category whereas milk powder with fat is kept under 13.5 per cent category. The petitioner's brand of milk powder is marketed as skimmed milk powder with added fat, i.e., milk powder with fat. Hence, it is clarified that the item, the Madhusudhan brand of skimmed milk powder containing added sugar and fat is not skimmed milk powder and therefore shall come under entry at Sl. No. 1 of the Fifth Schedule and shall be....