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2017 (1) TMI 1622 - AUTHORITY FOR ADVANCE RULING - MAHARASHTRARate of tax - Classification of goods - Back Bag - Tablet - Adopter - whether the goods find place in the entries of other schedules (A, B, C or D) or would fall under residuary entry? Held that:- The "back pack" is used for conveyance of laptop during journey. The Laptop is packed in cartoon box and delivered to customers. The customer, as per requirement purchases back bag and uses for conveyance during journey. Hence, it is not packing material as such prescribed under charging section to levy tax under section 7 of MVAT Act, 2002. The product is not covered by the schedule entry as claimed by the applicant and it falls under residuary entry, E-1, and thus liable to VAT at the rate of 13.5%. The "Tablet" is a thin, flat mobile instrument with a touch screen display, which is usually in color, processing circuitry, and a rechargeable battery in a single device. Tablets often come equipped with sensors, including digital cameras, a microphone, and an accelerometer, so that images on screens are always displayed upright. The CETH No.84713090 being covered by CET Heading as others for "Tablet" is not found in IT Products' Notification, hence, is not covered by S/E C-56. The product covered by Excise Heading Tariff item No.87413090 is not a part of Notification issued for the purpose exemption of tax. The product "Tablet" is not covered by any schedule entry and it falls under residuary entry, E-1and liable to VAT at the rate of 13.5% - Similarly, the product viz. "Adopter" having CETH No. 85044090 is not a part of Notification issued by State Government for the purpose of schedule entry C-56. The product is not covered by any schedule entry and it falls under residuary entry, E-1and liable to VAT at the rate of 13.5%. Prospective effect - Held that:- The Commissioner or, as the case may be, the Advance Ruling Authority, may direct that the Advance Ruling shall not affect the liability of the applicant or, if the circumstances so warrant of any other person similarly situated, as respects any sale or purchase effected prior to the Advance Ruling - It is settled principle that the issue of prospective effect is to be considered on fact and circumstances of each case separately. There is no straight jacket formula to say that prospective effect is to be given in typical circumstances. The applicant cannot prove existence of circumstances which warrant us to use the discretionary power. In fact use of such discretionary powers in the absence of compelling circumstances would be detrimental to legitimate government revenue and would wipe out the legitimate tax liability - we do not allow the use of prospective effect as a tool to protect or to wipe of legitimate tax liability - the pray for granting prospective effect to this order is hereby rejected. Ruling:- The commodities, namely "Back Bag", "Adopter" and "Tablet" do not find place in the entries of other schedules (A, B, C or D). Hence, they are covered by residuary entry, E-1 of MVAT Act, 2002 and are liable to VAT at the rate of 13.5 per cent as provided in said Schedule From time to time. The pray to grant prospective effect to this order is rejected.
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