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Karnataka
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Bangalore
The shape of things to come for papad makers
Staff Reporter
BANGALORE: The State Government on Wednesday informed the Karnataka High Court that papads should be round in shape if they are to be exempted from levy of value added tax (VAT). The State made this submission when a papad manufacturing company filed a writ appeal challenging a decision by the Commissioner of Commercial Tax to levy VAT on papads that are not round in shape. The company said the State Government had earlier exempted papads from levy of VAT. Subsequently, the Commissioner passed an order clarifying that only papads that are round in shape are eligible for exemption. The company challenged this order, saying that it is discriminatory. A Division Bench dismissed the petition, saying that the order could be questioned before the authorities and that it is only a show cause notice. The Bench observed that the company could reply to it and later approach the authorities for appeal.
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