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2008 (2) TMI 831 - KERALA HIGH COURTCycle parts - whether the provisions of the KVAT Act authorising levy of sales tax on parts of bicycles not covered under entry 13(3) at 12.5 per cent are discriminatory and against the mandate of article 14 of the Constitution of India? Held that:- On going through entry 13 of the Third Schedule to the KVAT Act, I find parts of bicycles, tricycles and cycle rickshaws covered by sub-entry (3) are only bicycle rims, bicycle spokes, bicycle hubs, bicycle free-wheels, bicycle saddles, bicycle chain and bicycle wheels. The usual entry to include other parts namely, "other", is absent in entry 13(3) of the Third Schedule. This obviously means that the Legislature did not intend to cover other cycle parts in the said entry. Therefore, all cycle parts are not covered under entry 13(3) of the Third Schedule. In fact, bicycle has ever so many other parts such as head lamp, fork, pedal, chain-cover, brake, etc. The contention of the petitioner that these items are not different from the other items enumerated in entry 13(3) has some force. The Government Pleader rightly pointed out that by virtue of section 6(1)(d) residuary items can be taxed at 12.5 per cent, without requirement of any notification. Even though agree with this argument of the learned Government Pleader, feel the matter requires to be considered by the Government and if they feel that higher rate of tax on some cycle parts are not intended, amendment has to be carried out. The original petitions are accordingly disposed of directing the Government to consider the matter in the light of the observation made above
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