10% VAT Payable On Insulated Glass: Allahabad High Court

The single judge bench of Justice Saumitra Dayal Singh has observed that insulated glass is nothing but double glazed dual sheet (DGDS).

The department has filed the revision against the order passed by the Trade Tax Tribunal. In that order, the Tribunal has allowed the assessee's appeal and held that insulated glass manufactured and sold by the assessee falls within the general description of 'plain glass-panes'. Therefore, it is excluded from Notification No. 1273 dated April 25, 2001 as amended from time to time. Accordingly, insulated glass has been held taxable as an unclassified commodity at the rate of 10%.

The issue raised was whether the Trade Tax Tribunal was justified in holding that on the manufacture and sale of laminated, insulated and toughened glass, the dealer was liable to 10% tax as glass and not at the rate of 16% as all the goods made of glass.

The court noted that, as per entry 39 of the notification dated 20.5.1976, "all goods and wares made of glass, not including plain glass-panes". This means that all items of glass have not been included as part of "glass and glassware". Entry 39: Plain glass-panes have been excluded from the scope of Entry 39. The glass screens manufactured by the assessee are more akin to glass-panes than glassware. The item has been excluded from the scope of Item 39. A glass screen is manufactured out of glass sheets and is a new item. As a result, it is excluded from the aforementioned Entry 39.

Case Title: The Commissioner Commercial Tax U.P. Lucknow Versus S/S G.S.C. Toughened Glass

Citation: Sales /Trade Tax Revision No. 1281 of 2012

Dated: 14.07.2022

Counsel For Revisionist: S.C.

Counsel For Respondent: Advocates Nishant Mishra,Yashonidhi Shukla

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