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2014 (2) TMI 390 - HC - VAT and Sales TaxRate of tax - Tax on sale of loudspeaker - Whether the goods sold by the assessee is covered by Notification in G.O.P.No.187 dated 30.03.1990 and what would be the rate of tax on the sale of goods - Held that:- rate of tax payable by any dealer on the sale of electronic goods in the category falling under Entry No.11, I Schedule to the TNGST Act shall be liable to be taxed at the rate of 3%. Now the issue to be considered is as to whether the speakers sold by the assessee/dealer are electronic goods - assessee has sold speakers along with car radios, radios and Tvs and not speakers, which are used in mike sets - car stereos are admittedly electronic goods covered by Entry 55 and speakers are nothing but accessories which are separately covered by the very same entry i.e. Entry 55 of the Kerala General Sales Tax Act - nobody can have a dispute that speakers attached to stereos are not accessories to it because without the speaker, stereo cannot be put to use at all; so much so, loud speakers which do not form accessory to any electronic item, only are covered by Entry 134 and loud speakers constituting accessory of electronic goods like stereo, car stereos and radios are covered by Entry 55. In Entry 11 of the First Schedule to the Tamil Nadu General Sales Tax Act, it was enumerated as "Sound transmitting equipment including telephones and loud speakers and spare parts thereof". By virtue of Notification G.O.P.No.187 dated 30.03.1990, reducing the rate of tax to 3% on sale of electronic goods with effect from 17.03.1990, the appellant/assessee is entitled to the benefit of said Notification, since the sale of speakers of the assessee were along with car radios, radios and TV sets, which are admittedly electronic items - Following decision of State of Kerala, Rep. By Joint Commissioner Vs. M/s.Sigma Inc.Palarivattom [2010 (9) TMI 954 - KERALA HIGH COURT] - Decided in favour of assessee.
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