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2023 (11) TMI 212 - HC - VAT and Sales TaxClassification of goods - rate of tax - Wire Nails - to fall within the meaning of “Fastener” as per entry 79 Part-II of Schedule II of VAT Act or under residuary entry in part IV of Schedule? - tax chargeable in entry 79 Part II of Schedule II is 5% and 14% in residuary entry Part IV of Schedule II? HELD THAT:- In case of Bharat Forge and Press Industries (P) Ltd. [1990 (1) TMI 70 - SUPREME COURT] the Supreme Court held that only such goods which cannot be brought under the various specific entries in the tariff schedule should be attempted to be brought under the residuary entry. In other words, unless the department can establish that the goods in question can by no conceivable process of reasoning be brought under any of the tariff items, resort can be had to the residuary item. Fasteners means is a device that mechanically joins or affixes two or more objects together. It is a device to attach especially by pinning, tying or nailing. Nuts, bolts, screws and fasteners are included in Entry 79 Part II of Schedule II of VAT Act. The function of Screw and Wire Nails is more or less similar and are normally used to attach two or more items. The respondent has to show as to why wire nails are put in residuary entry and not in Entry 79 Part II of Schedule II of VAT Act. What are the distinguishable features of wire nails to put it in the residuary entry has not been placed. There is nothing cogent on record that the wire nails cannot be put to any other entry than to residuary entry. With due respect the case law cited by the state is not applicable in the facts of the present case. The impugned order Annexure P/1 and P/6 are set aside holding that wire nails would fall within the meaning of fasteners under entry 79 of PART II of Schedule II of VAT Act - Petition allowed.
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