TRIPURA HILL DEVELOPMENT CO. LTD. Vs. STATE OF TRIPURA

JUDGEMENT

(1.) Petitioner has challenged an order dated 20th April, 2017 passed by the Superintendent of Taxes, Government of Tripura by which the said authority demanded Rs.2,75,851/- from the petitioner for assessment period 2010 ' 11 and Rs.3,98,354/- for assessment period 2011 ' 12 by way of additional value added tax under Tripura Value Added Tax Act, 2004 (TVAT Act, for short). The petitioner had imported several items, such as Glow Mint Moisturiser, Glow Fair Moisturiser etc. claiming that these items were in the nature of ayurvedic medicines and drugs on which according to the Schedule-II(a) to TVAT Act, 5% duty would be attracted. The department however, holds the belief that these items were in the nature of cosmetics and toilet articles which according to Entry No.45 to Schedule -II(b) of the Act, the rate of duty would be 12.5 percent to 14.5 percent as fixed by the Government from time to time.

(2.) On 25.03.2014, Superintendent of Taxes, Tax Audit Cell had passed an order of assessment for the said assessment period of A/Y 2010 ' 11 and A/Y 2011 ' 12. After issuing notice to the petitioner on this disputed item, he confirmed the duty demands holding that the imported goods would be classified under Entry-45 of Schedule-II(b) as cosmetics. The petitioner thereupon filed a revision petition before the Commissioner, who passed an order dated 25.07.2015 remanding assessment order 25.03.2014 in which he set aside the assessment for both the years and remanded the proceedings before the Assessing Authority for making a fresh assessment after examining whether the products would fall within the expression medicines or drugs or cosmetics. The Assessing Officer thereupon passed a fresh order dated 20.04.2017 in which he observed as under:

(3.) This order the petitioner has challenged in the present petition. Learned counsel for the petitioner submitted that the Tax Audit Officer had no authority to make assessment. Subsequent order of assessment which is challenged in this petition was without sending the samples for chemical analysis. The entire order is bad in law. The petitioner had imported drugs and medicines, the assessment order may be set aside.