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2015 (3) TMI 697 - HC - VAT and Sales TaxClassification - Cord wire - Electronic good or Electrical good - Held that:- In the case on hand, during the relevant assessment year 1991-92, the cord wire was not included in the entires and there was uncertainty as to whether it is electrical or electronic device. It is beyond any cavil that for the earlier assessment years and all subsequent assessment years, the department has assessed cord wires as electronic goods. That being the position, the onus lies on the department to prove that cord wires are not electronic goods. The department has not produced any material evidence to show that cord wires are electrical goods. The said view is fortified by a decision of the Supreme Court in Ponds India Ltd. [2008 (5) TMI 46 - SUPREME COURT], wherein it has been emphatically held that if an entry had been interpreted consistently in a particular manner for several assessment years, ordinarily it would not be permissible for the Revenue to depart therefrom, unless there is any material change; and that the burden of proof is on the taxing authorities to show that the item in question is taxable in the manner claimed by them. Further, the cord wire, which connects the main switch with the instrument, is transmitting electricity from the main switch to the instrument. Of course, the cord wire functions based on the electrical energy it receives from the main switch and transmits to the instrument. These cord wires are manufactured for a special and limited purpose for transmitting electricity to tape recorder. In other words, they are specially designed for a specific purpose, namely, to supply external power to the tape recorder. They cannot be regarded as electrical goods in common parlance. This aspect has been overlooked by the Tribunal. In such view of the matter, we have no hesitation to hold that the cord wire connecting the main switch with the instrument would not fall under the category of "electrical goods" and should be treated as "electronic goods". - Decided in favour of appellant.
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