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2017 (9) TMI 1536 - KARNATAKA HIGH COURTClassification of goods - rate of tax - Blood Collection Monitors - Blood Storage Refrigerators and Deep Freezers - Platelet Agitators with incubators - Plasma Expressers (Electrical and Manual) - Cryobaths - whether the said goods would fall within the ambit and scope of Entry 61 of the III Schedule to the KVAT Act, 2003, which reads as “61. Medical Equipments, Devices and Implants” taxable at the rate of 4% or would be taxable at the rate of 12.5% in the Residuary Entry as per Section 4(1)(b)(iii) of the KVAT Act, 2003? Held that: - the well settled legal principles for interpretation of various Entries under the Tax Laws are that such Commodities have to be interpreted in the manner in which the persons concerned with that Trade will construe them to be or in other words, the Common Parlance Test or Trade Parlance Test has to be applied while making such interpretations. There is no doubt that the collection of Blood samples and Diagnosis of the various contents of the Blood is a useful and integral part of the Medical treatment and without the Diagnosis of the Blood samples, possibly, the Medical Science as far as Allopathy is concerned, cannot even work. The integrity of the Blood Banks and Blood Bank Equipments with the Medical profession comprising of Diagnosis and treatment of the human beings and animals cannot be doubted and they cannot be separated also. The nature of business of the petitioner-assessee who is a registered dealer with the Respondent Department is nothing except dealing with the Blood Bank Equipments and other Medical Equipments. It was not selling usual Refrigerators or Cold Storages. These Refrigerators are specially designed for storing only Blood samples before or after their processing. Therefore, there is no good reason even to treat the Refrigerators specially designed for Blood samples as not falling within the wide scope of Entry 61, which as quoted above reads as ”Medical Equipments, Devices and Implants” - The other Blood Bank Equipments are undoubtedly covered by Entry 61 of the III Schedule to the KVAT Act, 2003. The goods viz. “Blood Collection Monitors, Blood Storage Refrigerators and Deep Freezers, Platelet Agitators with incubators and Plasma Expressers (Electrical and Manual) and Cryobaths” are taxable at the rate of 4% under Entry 61 “Medical Equipments, Devices and Implants” and not in the Residuary Entry of the KVAT Act, 2003 - petition allowed - decided in favor of petitioner.
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