TaxTMI 
TaxTMI 
2011 (12) TMI 471
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....ssed by the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad (for short, "the Tribunal"). The petitioner-M/s. Rich Graviss Products Private Limited, is a registered dealer under the VAT Act. The case of the petitioner is that it is a manufacturer of "Rich's Whip Topping" (for short, "the product") from out of edible vegetable oils and fats. It is not a sweet meat. It is an industrial input sold to bakeries and confectionary industry. It cannot be consumed directly by anyone except using the same for manufacture of bakery products and in hotel industry. Therefore, its case is that the product is an industrial input and it falls under entry 100(4) of Schedule IV to the VAT Act, but it does not fall under residuary Schedule V to ....
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....ing the same, the petitioner carried the matter in appeal in T.A. No. 393 of 2010 before the Tribunal. By the impugned order, the Tribunal holding that the product in question is a combination of water, edible vegetable fat, sugar emulsifiers, soy protein concentrates, stabilizers, acidity regulators, salt and also natural and artificial flavouring substances and that it is not referred to in any one of the other subclauses of entry 100 of Schedule IV to the VAT Act, dismissed the appeal confirming the order dated July 30, 2009 of the ruling authority. Hence this revision by the petitioner. Heard both sides and considered the written submissions filed by the counsel for the petitioner and also perused the material available on record. ....
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....06 SC 1561 and also a decision of this court in Ravi Agencies v. State of Andhra Pradesh [1989] 74 STC 187 (AP); 7 APSTJ (1988) 216. The counsel for the respondent-State would submit that the ruling authority as well as the Tribunal rightly held that the product in question does not fall under entry 100 of Schedule IV and falls under residuary Schedule V to the VAT Act, and therefore, it is liable to tax at 12.5 per cent and the same does not warrant interference of this court in any manner. Now, the points that arise for consideration are "whether the product 'Rich's Whip Topping' is a raw material and/or an industrial input and whether it falls under entry 100 of Schedule IV or residuary entry of Schedule V to the VAT Ac....
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....etitioner placed a document (chart) showing the process of making the product. The said process shows that there are more than a dozen stages in making the product. However, the raw material means "any substance, in its natural unprocessed state that serves as the starting point for a production or manufacturing process". But, the product in question is a combination of different ingredients, viz., water, edible vegetable fat, sugar emulsifiers, and soy-protein concentrates, stabilizers, acidity regulators, salt and also contains natural and artificial flavour substances. In view of the same, it cannot be said that the product is a raw material and/or industrial input. The apex court while dealing with a similarly placed matter in A.P. P....
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....tioner as misconceived. Apart from that, admittedly the petitioner uses hydrogenated oil also in the making of the product in question, which does not find place in entry 100(4) of Schedule IV to the VAT Act. On the other hand, Schedule V to the VAT Act reveals that all the goods other than those specified in Schedules I, III, IV and VI are taxable at 12.5 per cent. Thus, the petitioner failed to establish that the product in question falls under entry 100(4) of Schedule IV to the VAT Act. On the other hand, as rightly pointed out by the respondent-State, the product in question does not fall in any of the Schedules I, III, IV and VI, and therefore, it falls under residuary Schedule V to the VAT Act. In that view of the matter, the decision....