Clipped from: https://www.taxscan.in/mosquito-mats-coils-and-vaporizers-and-mortein-are-insect-killers-subject-to-12-5-vat-sc/268562/?utm_source=izooto&utm_medium=push_notifications&utm_campaign=Mosquito%20Mats,%20Coils%20and%20Vaporizers%20and%20Mortein%20are%20insect%20Killers,%20subject%20to%2012.5%%20VAT:%20SC
By Aparna. M – On April 11, 2023 6:15 pm – 2 mins read
In a significant case, the supreme court held that mosquito mats, coils, vaporizers and Mortein are insect killers therefore it was subject to tax at the rate of 12.5%.
The aforesaid civil appeal was filed by the appellant Reckitt Benckiser (India) Ltd against the order passed by the High Court of Kerala at Ernakulam.
The Appellant filed an appeal before the High Court of Kerala against the order of the Commissioner of Commercial Taxes with respect to the classification of the goods in question. The issue raised by the assessee was that Mosquito Mats, Coils and Vaporizers; and Mortein Insect Killers, were classifiable under Entry No. 44(5) of the III Schedule to the Kerala VAT Act as being ‘pesticides, insecticides’ corresponding to HSN Code 3808 and therefore subject to VAT at the rate of 4%.
But the High Court rejected the appeal and upheld the order of the commissioner. The Aggrieved appellant, therefore, filed the present appeal before the Supreme Court.
Siddharth Bawa, counsel has appeared on behalf of the appellant contended that even after the introduction of SRO 82/2006, Mortein range and Mortein Spray continue to be classifiable as insecticides, as they are manufactured under an insecticides license issued under the Insecticides Act.
Further, the Mortein Spray kills insects, hence even according to the respondents’ interpretation, Mortein Spray cannot fall under Item No.66 of SRO/2006, as Item No. 66 deals only with Mosquito repellants.
Sasi, counsel appearing for revenue submitted that “Mortein Mosquito coil, mat and liquid vaporizer” could not be classifiable as an insecticide
Moreover, the product “Mortein Mosquito Coil, mat and liquid vaporizer” would definitely come under Entry 66 “Mosquito Repellent.
Justice M. R. Shah confirmed the order passed by the high court in so far as the products Mosquito Mats, Coils and Vaporizers and Mortein Insect Killers.
Thereafter the bench dismiss the appeal filed by the appellant and observed that Mortein Mosquito Coil, Mat and Liquid Vaporizer is classifiable under Entry 66 of Notification SRO 82/06 dated 21.01.2006 issued under Section 6(1)(d) of the Kerala VAT Act and Mortein Insect Killer is subject to tax at the rate of 12.5%.To Read the full text of the Order CLICK HERE
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M/s Reckitt Benckiser (India) Ltd. vs Commissioner Commercial Taxes & Ors.
CITATION: 2023 TAXSCAN (SC) 146
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