THE ADDITIONAL COMMISSIONER (LEGAL) COMMERCIAL TAXES RAJASTHAN vs M/S LOHIYA AGENCIES

The Supreme Court examined the classification of 'Gypsum Board' under the Rajasthan Value Added Tax Act, 2003 (RVAT). It held that 'Gypsum Board' does not fall under Entry 56 of Schedule IV, which attracts a 4% tax, but rather under the residual Entry V of Schedule 5, subject to a 12.5% tax. The Court emphasized that the distinct commercial identity of 'Gypsum Board' due to its manufacturing process and additives justifies its classification as a separate product, thus affirming the lower court's decision.