Description:
The Hon’ble Supreme High Court in between Andhra Pradesh Products Vs State of Andhra Pradesh reported in (2007) 8 VST 373 while dealing with masala Powder observed and held as follows :
On appeal to the Supreme Court.
Held, affirming the decision of the High Court that the ingredients which were used in the preparation of Masala Powder after grinding and mixing lose their identify and character, and a new product separately known to the commercial world came into existence. Since Masala Powder, a separate commodity, came into existence, it became separately taxable goods for the purpose of sales tax.
Source:
Trade and Taxes.Volume no.18. Part no.6. June 2011. Page no. 285.
Our Comment:
Ap Vat Is Leviable Based On The Ingreients Involved In The Final Product
