The state government has declared that the aluminium tawa (commonly called the non-stick tawa) is not used by the poor and hence, cannot be given tax exemption under the Karnataka Value Added Tax (VAT) Act.
The move comes in the backdrop of a clarification sought by a city-based trading firm, which maintained that the non-stick tawa is a commonly used utensil and should not be taxed. The trading firm had cited chief minister Siddaramaiah's 2016-17 budget sop that read: "Exempt aluminium household utensils other than pressure cookers and cutlery for the benefit of the poor." The firm had justified its request for VAT exemption, saying the tawa is nothing but a hard-anodised aluminium product and is also used by the poor these days.
However, the department of commercial taxes spiked the request and a notification to this effect was issued on February 9. The department said: "The intention of the budget is to exempt aluminium household utensils used by the poor. Aluminium utensils with the non-stick coating are not used by poor people."
The department justified the move by citing the 2008 Supreme Court judgement in the Hawkins versus State of Kerala case. The judgment read: "By no stretch of the imagination, satilon (hard-anodised coating used on all surfaces) coated cookware can be treated as ordinary aluminium household utensils."
Commercial taxes department commissioner Ritvik Pandey, in his order, stated: "Anodised tawa is not fully made of aluminium. Handles made up stainless steel or plastic are fitted to the tawa to make it comfortable." The department also maintained that the process involved in making an aluminium tawa is different from that of an ordinary aluminum utensil.
Stating that hard-anodised aluminium cookware is sticking-resistant, the commissioner's order said: "When raw aluminium is hard-anodised, it turns grey and also seals the surface of the metal to make it virtually non-porous. Anodisation is a process wherein chemical baths are used to prepare the surface of aluminium to receive an electrical charge, which will increase the thickness of the oxide layer and make it harder, more durable and less likely to corrode. Anodised aluminium is definitely less reactive than non-anodised aluminium."
The department said the CM's budgetary relief was applicable to domestic aluminum utensils which do not have a combination of other metals or plastic. "Hence, aluminium tawa with non-stick properties is liable to be taxed at 5.5 per cent under the VAT Act," the order stated.
The move comes in the backdrop of a clarification sought by a city-based trading firm, which maintained that the non-stick tawa is a commonly used utensil and should not be taxed. The trading firm had cited chief minister Siddaramaiah's 2016-17 budget sop that read: "Exempt aluminium household utensils other than pressure cookers and cutlery for the benefit of the poor." The firm had justified its request for VAT exemption, saying the tawa is nothing but a hard-anodised aluminium product and is also used by the poor these days.
However, the department of commercial taxes spiked the request and a notification to this effect was issued on February 9. The department said: "The intention of the budget is to exempt aluminium household utensils used by the poor. Aluminium utensils with the non-stick coating are not used by poor people."
The department justified the move by citing the 2008 Supreme Court judgement in the Hawkins versus State of Kerala case. The judgment read: "By no stretch of the imagination, satilon (hard-anodised coating used on all surfaces) coated cookware can be treated as ordinary aluminium household utensils."
Commercial taxes department commissioner Ritvik Pandey, in his order, stated: "Anodised tawa is not fully made of aluminium. Handles made up stainless steel or plastic are fitted to the tawa to make it comfortable." The department also maintained that the process involved in making an aluminium tawa is different from that of an ordinary aluminum utensil.
Stating that hard-anodised aluminium cookware is sticking-resistant, the commissioner's order said: "When raw aluminium is hard-anodised, it turns grey and also seals the surface of the metal to make it virtually non-porous. Anodisation is a process wherein chemical baths are used to prepare the surface of aluminium to receive an electrical charge, which will increase the thickness of the oxide layer and make it harder, more durable and less likely to corrode. Anodised aluminium is definitely less reactive than non-anodised aluminium."
The department said the CM's budgetary relief was applicable to domestic aluminum utensils which do not have a combination of other metals or plastic. "Hence, aluminium tawa with non-stick properties is liable to be taxed at 5.5 per cent under the VAT Act," the order stated.