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Supreme Court of India 2019-01-08

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

Bench: 3 — Sanjay Kishan Kaul

In Brief

In this tax interpretation case, the Supreme Court held that gypsum board falls within the expanded definition of 'Gypsum in all its forms' under Entry 56 of the Rajasthan Value Added Tax Act, 2003, and is taxable at 4% rather than under the residuary entry at 12.5%. Gypsum board—consisting of a gypsum core sandwiched between paper layers—involves only dehydration and mixing of additives; its chemical composition remains essentially gypsum. The Court reasoned that the legislature's amendment from 'gypsum' to 'gypsum in all its forms' must be given meaning, and prior precedents establish that even products with new properties acquired through processing retain their original classification if the core substance is unchanged. The appeals were dismissed with costs to be borne by the parties themselves.", <parameter name="articles_cited">[]

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Taxation Goods and Services Tax Statutory Interpretation Valuation of Goods

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