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Showing contexts for: bubbling in Commissioner Of Trade Tax, U.P vs Associated Distributors Ltd on 5 May, 2008Matching Fragments
4. The issue involved in these appeals is confined to the rate of tax applicable on the sales of Bubble-gum. According to the appellant, Bubble-gum is taxable as an unclassified good and would attract the duty at the rate of 10% inclusive of surcharge. In the impugned judgment, the High Court arrived at the conclusion that Bubble-gum is a confectionery item and, therefore, be taxed at the rate of 6.25%.
5. The Tax Assessing Officer for the assessment year 1994- 95 has levied the tax with additional tax at the rate of 10% treating Bubble-gum as unclassified and non-scheduled item. In an appeal filed by the respondent, the learned First Appellate Court accepted the submission of the respondent and taxed Bubble-gum at the rate of 6.25%. The appellant aggrieved by the said order preferred the second appeal before the Sales Tax Tribunal, Branch-II Ghaziabad. The Tribunal in detail discussed the controversy involved in the case.
If the ratio of the aforesaid judgment is properly comprehended then Bubble-gum in the common parlance cannot be construed as Mithai (Sweetmeat). When we apply common parlance test and in fact ask someone to bring the sweets from the market, he will never bring Bubble-gum. In common parlance, even items of confectionery will not be construed as sweetmeat (mithai). In fact, Bubble-gum is not an item for eating. It is kept in the mouth and after chewing the same is thrown out. The Bubble-gum while kept in the mouth by the children is also inflated as a balloon. In fact, it is used as a 'mouth freshener'. It is not made only of sugar. It contains gum base, vexes etc. along with sugar.
620) and the judgment of the Sales Tax Tribunal, Kanpur in Gum India Ltd. Kanpur v. Commissioner of Trade Tax (1996 STD Tribunal 124). According to these judgments, 'Chewing-gum and Bubble-gum, etc. are taxable as 'sweetmeat' and confectionery items. The tribunal also considered the judgment delivered in the case of Pappu Sweets (supra).
11. The notification issued under UP Sales Tax Act, the mithai (sweetmeat), cooked food, namkin etc. are under one entry, but it does not mean that namkin and cooked food is sweetmeat (mithai). The copy of Part V & XI and VIII of the Food Analysis Book which has been submitted, there is a mention about several items like bread, rusk, foodmeat, white bread, cream role ice-cream, cone, Bombay Halwa etc. In this one of items mentioned is Bubble-gum. It does not mean that Bubble-gum is a sweetmeat (mithai) or confectionery.
12. The Tribunal clearly came to the conclusion that Bubble- gum is neither sweetmeat (mithai) nor confectionery. The tax is liable to be paid on Bubble-gum as an unclassified item.
13. The respondent aggrieved by the said judgment of the tribunal filed a revision petition before the High Court of judicature at Allahabad.
14. The High Court came to the specific finding that the Bubble-gum cannot be treated as a sweetmeat but it is certainly an item of confectionery. In the impugned judgment, the High Court gave no reasons for its finding. The respondent did not give any break up of the ingredients of Bubble-gum. It was never the case of the respondent that Bubble-gum is a sugar product. Confectionery is not even mentioned in the notification. The High Court ought to have properly comprehended the object of the notification.