The main legal point established in the judgment is that the specific entry overrides the general entry, and the burden of proof lies with the Revenue to establish the classification of goods under the relevant entries of the RVAT Act.

ORDER :

1. The present Sales Tax Revisions / References (for short “STRs”), filed under Section 84 of the Rajasthan Value Added Tax Act, 2003 (for short “RVAT Act”), were admitted on following questions of law:

“(i) Whether the learned Tax Board is justified in holding that Kurkure and Cheetos are not classifiable as Namkeen under Entry 131 of Schedule IV, holding that the products will fall under Schedule V (Residual Rate) of the VAT Act, just because similar contention was turned down while interpreting different entries under the erstwhile Rajasthan Sales Tax Act, 1994?

(ii) Whether the learned Tax Board is right in adopting a restricted meaning for the term “namkeen” in interpreting the scope of Entry 131 of the Schedule IV?”

2. As common issue of classification of ‘Kurkure’ and ‘Cheetos’ is involved in all these STRs, with the consent of the parties, they were heard together and are now being decided by way of this common order. STR No. 119/2020 is taken as lead file to peruse the facts.

3. Learned counsel for the petitioner-assessee submits that the petitioner-assessee is a private limited company incorporated under the provisions of the Indian Companies Act 1956 having registered office at Gurugram, Haryana (formerly known as ‘Gurgaon’) and having its principal place of business in the State of Rajasthan at Jaipur. The petitioner-assessee is also a registered dealer under the RVAT Act and is engaged in the sale of various food products, including the goods in question, i.e. ‘Kurkure’ and ‘Cheetos’. The petitioner-assessee is also engaged in the sale of branded potato chips, which are sold under the brand name of ‘Lays’ and ‘Uncle Chips’. The petitioner-assessee was self classifying the goods in question along with the branded potato chips under Entry 131 [Sweetmeat Deshi (including Gajak & Revri), bhujiya, branded and unbranded namkeens.] of Schedule IV to the RVAT Act and paying tax @ 4% / 5%. A survey was conducted at the business premises of the petitioner-assessee for the assessment year 2011-2012, which ultimately resulted into passing of the impugned Assessment Order dated 20.09.2016, wherein the Revenue classified the goods in question along with the branded potato chips under the Residual Entry under Schedule V to the RVAT Act attracting tax @ 12.5% / 14%. Accordingly, the differential tax and interest was imposed upon the petitioner assessee vide assessment order dated 20.09.2016. The appeal against the said assessment order was partly allowed by the first Appellate Authority vide order dated 20.11.2017, to the extent of classification of branded potato chips being covered under Entry 107 of Schedule IV to the RVAT Act. Therefore, the differential tax and interest qua the branded potato chips was deleted but the classification of ‘Kurkure’ and ‘Cheetos’ under the residual entry of Schedule V to the RVAT Act was maintained. The Rajasthan Tax Board also dismissed the appeal filed by the petitioner-assessee vide order dated 03.01.2020 and maintained the levy of additional tax and interest by classifying ‘Kurkure’ and ‘Cheetos’ under the residual Entry No. 78 of Schedule V to the RVAT Act. Being aggrieved, the present STRs were filed.

4. Learned counsel for the petitioner-assessee has challenged the classification adopted by the Revenue, of the goods in question under residual entry, primarily, on the following grounds:

4.1) The first submission of learned counsels for the petitioner-assessee is that the revenue has not discharged its onus to prove that the goods in question, i.e. ‘Kurkure’ and ‘Cheetos’ could not be considered ‘namkeen’ and covered under Entry 131 of Schedule IV to the RVAT Act. In support of his claim that the goods in question would qualify as ‘namkeen’, learned counsel for the petitioner-assessee has placed reliance on definition of namkeen as provided by the Bureau of Indian Standards. Learned counsel for the petitioner-assessee has also emphasized that on the packaging material of the goods in ques