K. Vinod Chandran, J.

1. The appeal arises from a Clarification Order issued under Section 94 of the Kerala Value Added Tax Act, 2003 ('KVAT Act' for short). The appellant/dealer, inter alia, is engaged in the manufacture of 'bakery shortening'. The clarification sought for was the tax rate applicable to 'bakery shortening', which according to the appellant falls under Entry 38 of the Third Schedule of the KVAT Act exigible to tax @ 5%. The clarification sought was in the context of the Department having the opinion that it would not fall under Entry 38, for reason of the product not being covered under the specific Harmonised System of Nomenclature (HSN) Code shown against Entry 38(18)(d): 'Others including vanaspati'.

2. The Department maintains that the product not being an animal or vegetable fat or oil, or a hydrogenated vegetable oil; under which later classification, 'vanaspati' falls, has to be taxed under the residual entry in S.R.O. 82 of 2006. The applicant, before the Authority for Clarification contended that 'bakery shortening' falls under HSN Code 1516,