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2017 (1) TMI 64 - HC - VAT and Sales TaxClassification of goods - batteries for the purposes of Radio Communication Receivers (RCRs) - classified under Entry no.13 i.e. RCRs, taxable at the rate of 4% or will fall in the Residuary Entry V taxable at the rate of 12.5%? - Held that: - the batteries which were supplied by the assessee to the Army, were accessories of Radio Set STARS V 5W, and Radio Communication Receiver is incomplete/non-functional without the said part being placed. Once there is a specific certificate by the Army itself, who purchased the said batteries, in my view the finding reached by the Tax Board appears to be unjustified, and when Entry No.28 mentions about tax on 1 to 27, which includes RCRs and Radio Pagers, to be applicable at the rate of 4%, in my view any part including batteries would cover in Entry No.28. Battery is certainly fitted for RCRs or used in Cars and for other diverse purposes and unless a battery is fitted into a RCR or so to say a Car, it would be non-functional and such RCRs or/and Cars will not start and will not function. Once there is a specific rate of 4% for the parts sold, in my view the finding reached by the AO as well as the Tax Board is contrary to the specific Entry - the claim of assessee, in my view, appears to be just and proper and the rate of 4% was rightly paid by the assessee and is not required to be interfered with - petition allowed - decided in favor of assessee.
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