M/S.Foods vs State Of Kerala on 27 March, 2014
10. The Division Bench of this Court observed that use of
Bakery Margarine was only for Bakery/Confectionary industries and
W.P.(C)Nos. 13780, 16328 & 30086 OF
2013,& 1477, 1608, 3850, 3920 AND 4458
of 2014
17
that the manufacturers had specifically prohibited use of the
item for any other purpose. It was also observed that, it was not
directly consumable unlike 'Vanaspati' or such other edible oils; and
further that , although hydrogenated oil or refined oil can also be used
for Bakery or Confectionary industries, the reverse is not true, in so far
as Margarine, exclusively made for use in Bakery or Confectionary
industries, cannot be treated as 'Edible oil' and the same cannot be
used for all purposes for which Edible oil is used. When a doubt was
expressed, whether Margarine would come within the purview of
'Edible oils' to get concessional rate of tax , the position was explained
by the Government, pointing out that it was applicable in respect of
items such as Groundnut oil, Gingelly Oil and Vanaspati. A Division
Bench of this Court gave a restrictive meaning to the above
clarification, confining the same to the specified item and held that
'Margarine' was not similar to the said items and hence was exigible
to higher rate of tax, having been included under Entry 90 of the
First Schedule to the KGST Act [[2007] 8 VST 726(Kerala).
(State of Kerala vs. Aluva Sugar Mills)]