M/s. Gas Associates
1A/3, Amar Park
Rohtak Road
New Delhi-35

Present for the applicant : Shri Ashok, Partner
Present for the Department : Shri R.S.Gupta, DR

The present application has been moved by the above named applicant on 24.05.05 u/s 84 of the Delhi Value Added tax Act, 2004 for determination of the under mentioned question under the aforesaid provision of law:

Whether "Carbon Dioxide Gas" HSN Code No. 2811 is covered by Notification No. F.101(328)/2005 Fin. A/cs(ii) 548 dated 11.05.05 and included in the entry appearing at Serial No. 44 (a) of the list of Industrial Inputs and accordingly taxable at the rte of 4% under the DVAT act or it is a general item attracting tax at the general rate of 12.5%.

2. The application for determination has been preferred in the prescribed format DVAT-42 and the requisite fee of Rs. 10,000/- duly paid through Demand Draft No. 095644 dated 21.05.05.

3. The applicant is registered with Ward No. 49 of the Department and holds RC No.LC/49/164345/0493 with Tin No. 07280164345. The case of the applicant is that he deals in the "Carbon Dioxide Gas" which is widely used in the Fire Department of the Delhi Government in various other Govt. Departments, Multistoried Buildings, Hospitals as well as in the welding work. According to the Counsel appearing for the applicant, although, his client is charging tax A 12.5% on the sale of this "Gas" pre-cautionary, yet, in view of the aforesaid, the "Gas" which bears HSN Code No. 2811, is covered by Entry No. 44 (a) relating to "Other Organic Acids and other Inorganic Compounds of Non-Metals" in the list of Industrial Inputs and attract tax @ 4% under Notification No. F 101(328)/2005-Fin. A/Cs(ii)/548. The next submission of the Counsel is that the Govt. of Haryana where the VAT Act is already in force, has made this "Gas" chargeable to tax at 4%. In evidence, the applicant has annexed a copy of Bill No. 230 dated 16.05.05 of National Fertilizers Ltd., Gohana Road, Panipat for Rs. 15,496-25 on which amount a local VAT of 4% has been charged by the Company. The Counsel has also annexed a copy list of Inorganic Chemicals" in which the "Carbon Dioxide Gas" (Co2) has been shown covered under "Inorganic Chemicals". Therefore, the argument of the counsel for the dealer is that in the light of these facts, the item in question be determined as chargeable to Value Added Tax at 4%.

1. However, the argument of the DR is that the "Carbon Dioxide Gas" (Co2) is not covered by Entry No. 44 (a) of the list of Industrial Inputs as an inorganic compound of Non-Metals and as such, it is not taxable 4%. According to the DR, the "Gas" in question is a general unclassified goods covered by section 4(1)(e) of the Delhi Value Added Tax Act, 2004 and attracts tax @ 12.5%. Therefore, as the DR sums up his arguments, the applicant is rightly charging the tax at 12.5% on it and he should continue to charge the same rate on this item in future as well.

2. I have heard the arguments put up from both sides as well as gone through the application filed and the documents placed on record. On giving deep thought and intense consideration to the arguments made and the nature of the item involved, this Court is of the opinion that the "Carbon Dioxide Gas" i.e. Co2 is not covered by Entry No. 44(a) of the list of industrial inputs but is a general item taxable @ 12.5% under section 4(1)(e) of the Delhi Value Added Tax Act, 2004. It is, therefore, held accordingly. Announced in the open Court in the presence of the Counsel of the parties.

Sd/-
(R.K.VERMA)
COMMISSIONER, Value Added Tax, DELHI