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Supreme Court of India 2019-01-08 dismissed

Additional Commissioner (Legal), Commercial Taxes, Rajasthan & Anr vs Lohiya Agencies & Anr

Bench: 3 — Sanjay Kishan Kaul

In Brief

The Supreme Court examined whether gypsum board (drywall), manufactured from gypsum, should be taxed at 4% as 'gypsum in all its forms' under the Rajasthan Value Added Tax Act or at 12.5% under the residuary entry. The Court held that gypsum board falls within the expanded definition 'gypsum in all its forms'. Since gypsum board's primary composition remains gypsum—undergoing only dehydration and mixing with additives without chemical change—and the legislature consciously broadened 'gypsum' to include 'all its forms', the higher tax rate was not applicable. The Court dismissed the revenue appeal.

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Value Added Tax Tax Classification Statutory Interpretation Consumer Goods Manufacturing Process

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