We are looking for a opinion about WB VAT impact
C.A Alok Mukherjee
(Querist) 02 May 2011
This query is : Resolved
Can anybody please provide me a contact details of a legal expert in Kolkata who can give an opinion on tax impact of WBVAT Act?
R.Ramachandran
(Expert) 02 May 2011
Dear Mr. Alok,
If you want a opinion on any point touching upon WBVAT Act, you can refer the query. I can give a opinion. If you are very particular that only a lawyer at Kolkata has to do, then you can get in touch with Mr. Devajyothi Barman or Mr. Soumitra Mitra who are also experts in this LCI Forum.
C.A Alok Mukherjee
(Querist) 02 May 2011
Thanks, Mr. Ramchandran,
We are belonging to Dairy industry. Our product is pasturised milk and ice-cream. Milk is an exempt commodity as per VAT Act but Ice-cream is a Taxable commodity. We in our VAT return claimed ITC on Plastic Spoon as Packing Material and availing input tax credit as per section 24(4)(e) treating it as eligible for input tax credit. The issue was raised in assessment of 2005-06 and in subsequent years till 2007-08. The contention of the assessing officer was “plastic Spoon” though essential for sale of ice-cream but it cannot be termed as “packing material” for eligibility of ITC purpose and hence ITC on it is not allowable. We have the contention and believe that though the item is shown as Packing material but essentially the item is forming part of sale of ice-cream since it is not disputed that the material is transferred along with ice-cream and the consideration for which is merged with the sale of ice-cream. Such merging of item is legally valid and it is not restricted by any Act secondly Ice-cream by itself would not be a saleable goods unless “Plastic Spoon” is issued along with ice-cream inter alia making the product as a deliverable stage.
Query
What will be our stand, how much strength we have if not enough "why"? If "yes" what would be our course of action.
soumitra basu
(Expert) 05 May 2011
Since you are selling Ice Cream free and plasting spoon is delivering free, you may not get the benefit of ITC. It is debatable issue whether plastic spoon is an essential product for selling ice creame. It is neither raw materials, nor packing materials nor consumables.
I think you can discuss the matter either with Mr. G. C. Mukherjee or CA Sanjay Bhattacharjee at Kolkata. If you have to take the matter at High Court Level then you may discuss either with Mr. Bajoria, advocate or Mr. J. P. Khaitan, advocate
