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We find that the amended Entry 56 of Schedule IV of the RVAT, read as "gypsum in all its forms", would include "gypsum board" under the term "all its forms"

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Entry 56 of Schedule IV of the RVAT —Classification of Gypsum Board —The Gypsum is taxable at 4% under Entry 56 of Schedule IV of the RVAT. This Entry was, however, amended and substituted vide Notification No. F.12(63)FD/Tax/2005-19, dated 19.4.2006, to expand the meaning of Entry 56 of Schedule IV of the RVAT by changing it to ‘Gypsum in all its forms’. M/s. Indian Gypsum Ltd. manufacturer of gypsum board moved an application before Department for ascertaining whether gypsum board would fall within the category of the amended Entry 56 of Schedule IV of the RVAT, with 4% rate of tax applicable, or under the residuary Entry referred to aforesaid. The department opined that gypsum board, being commercially a different product would not fall under Entry 56 of Schedule IV of the RVAT but would fall under the residuary Entry, making it subject to the 12.5% slab of taxation. The respondent assessee was made liable to pay the differential tax of 8.5% for the assessment years, along with penalty and interest. He filed appeals and in the High Court which reversed the decision of the appellate authorities and held that the amended Entry 56 of Schedule IV of the RVAT, read as ‘gypsum in all its forms’, would include ‘gypsum board’ under the term ‘all its forms’. The department filed appeal against the decision. The Court observed that the legislature expanded the original Entry from ‘gypsum’ to ‘gypsum in all its forms’. If the object was to include only ‘gypsum’, then why the Entry would be changed to ‘gypsum in all its forms’.
Held that:- The Hon’ble Supreme Court dismissed the appeal.—The Additional Commissioner (Legal), Commercial Taxes, Rajasthan & Anr. Vs. Lohiya Agencies & Anr. [2019] 08 TAXLOK.COM 104 (SC)