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2016 (11) TMI 1321 - HC - VAT and Sales TaxTaxability of submersible pumps upto 5 HP upto June 30, 2006 and thereafter - Classification of goods - classified under Entry 71A of Schedule 'C' or under Entry 1(D)(9) of Schedule 'B' - Whether submersible pumps are covered under entry 71-A of Schedule C of the Haryana Value Added Tax Act, 2003 amended on 20.6.2006 with effect from 01.07.2006 vide Notification No. S.O. 58/HA/6/2003/S.59/2006? - Held that: - agricultural pump sets were exempted from payment of tax in Haryana whereas other pump sets were taxed @12.5%. On the other hand, tax on such pumps in the neighbouring State was 4%. It was in the light of these facts that the amendment was carried out while adding Entry 71-A in Schedule 'C' taxing pump sets below 5 HP uniformly. It was for the reason that in agriculture normally the pump sets above 5 HP capacity are used - submersible pump sets used for agricultural purposes fall in Entry 1(D)(9) of Schedule 'B' upto June 30, 2006, hence tax free. From 1.7.2006 onwards pump sets below 5 HP capacity will fall in Entry 71-A in Schedule 'C', hence will be taxable irrespective of its end use. Appeals disposed off.
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