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2014 (4) TMI 756 - SC - VAT and Sales TaxRate of Tax – Exemption Notification - Transformers – Classification - Whether the transformer purchased by the assessee at the concessional rate of tax falls under the category of "accessories and component parts" required for use in the manufacture of notified goods under the U.P. Act - Held that:- Judgment in Annapurna Carbon Industries Co. vs. State of Andhra Pradesh [1976 (3) TMI 156 - SUPREME COURT OF INDIA] followed - Accessories are an object or device that is not essential per se but that is supplementary or secondary to another object of greater or primary importance which assists in operating or controlling or may serve as aid - The meaning ascribed to the term "accessory" was followed in Mehra Brothers vs. Joint Commercial Officer, Madras [1990 (11) TMI 144 - SUPREME COURT OF INDIA] - Car seat covers are accessories as "an addition; an adjunct; an accompaniment for comfortable use of the motor vehicles or for adding elegance to the seat. Purpose of transformer in the manufacturing unit - Whether it is an accessory to the manufacture of the goods so as to claim concessional rate of tax – Held that:- In the manufacturing process transformer serves the purpose of modifying or controlling the voltage supplied by the utility to the manufacturing unit according to its specific requirements - The transformer installed in the unit would ensure that the electricity is supplied to the unit so as to ensure its optimal performance - The transformers that are purchased by the respondent/assessee would act to the effective functioning of the machinery installed in the unit used for the purpose of manufacture of urea and fertilizers and hence are accessories to the manufacture of urea and fertilizers - Therefore, assessee would certainly fall within the meaning of the expression "goods required for use in the manufacture" appended as explanation to Section 4-B(2) – Therefore, impugned judgment and order does not suffer from any error whatsoever and therefore, no need to interfere with the findings and conclusion reached by the High Court - The appeals are dismissed – Decided in Favour of Assessee.
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