The single bench of the Allahabad high court in a revision petition filed before it held that four percent Value Added Tax is applicable to supply of Pat Pre-Form of plastic bottles to dealers.
The aforesaid order is pronounced by the revision petition filed by the Commissioner Commercial Tax U.P. Lucknow against the order of the Commercial Tax Tribunal
Shubham Agrawal Counsel for the assessee S/S Varun Beverages Ltd. “The pre-form of plastic bottles are in fact in compressed form manufactured by the assessee and by use of technology by the purchasers, it takes the form of bottles and are used by the purchasers for storing liquid”. Further Assessee contended assessee is entitled to be benefited as provided under Entry No.174 Part C Schedule II of the Act of 2007.
Bipin Kumar Pandey counsel for the revisionist submit that pat preform of plastic bottles are intermediate products made by the assessee and it was not the articles for packing of goods of plastic, namely, crates, containers, carboys, bottles, jars, jerry canes and their stoppers, lids, caps of plastic as mentioned in the Entry No.174 and the goods which have been supplied by assessee was in an intermediate form .Moreover after the blowing of products by the purchasers that the shape of the bottles takes place and thus, to be taxed @ 12.5% by the assessing authority.
After considering the both contentions of the parties then single bench Justice Rohit Ranjan Agarwal dismissed the revision petition and held that bottles which are manufactured by the assessee in part pre-form of plastic bottles are actually the bottles which find place in Entry No.174 of Schedule II Part C.
Further the bench observed that “it is only in the compressed form and after it reaches the place of the purchasers that before use, by use of technology, it takes the shape of expanded bottles by blowing air into it. The bottles which are being manufactured by the assessee are easy to be transported to the place of purchasers and not much storage/place is needed for storing these bottles in the form of part pre-form of plastic bottles.”
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