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2014 (12) TMI 836 - SUPREME COURT
Rate of VAT on cell phone battery charger - Charger is sold as composite package along with cell phone - High Court observed that said charger cannot be excluded from the Entry for concessional rate of tax which applies to cell phones and parts thereof - Punjab Value Added Tax Act, 2005 (PVAT) - Held that:- It cannot be held that charger is an integral part of the mobile phone making it a composite good. - Merely, making a composite package of cell phone charger will not make it composite good for the purpose of interpretation of the provisions. The word 'accessory' as defined in the Webster's Comprehensive Dictionary (International) Volume-I.
Assessing Authority, Appellate Authority and the Tribunal rightly held that the mobile/cell phone charger is an accessory to cell phone and is not a part of the cell phone. We further hold that the battery charger cannot be held to be a composite part of the cell phone but is an independent product which can be sold separately, without selling the cell phone. The High Court failed to appreciate the aforesaid fact and wrongly held that the battery charger is a part of the cell phone. - Decided in favor of Revenue.