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2007 (10) TMI 301 - SC - VAT and Sales TaxWhether the item 'Capacitors' is 'electronic goods' or 'electric goods'? Held that:- High Court was also right in indicating that when the item has been specifically included in the list prepared by Electronic Commission, the Tribunal could not have applied 'functional test' 'operating principle' or user test'. A limited inquiry which was required to be made by the Tribunal was whether the item had been included in the list prepared by the Electronic Commission. If any item is included in the said list, it has to be treated as such and tax has to be levied on that basis. But if the item is not included in the list, it is open to the Tribunal to consider its placement on the basis of 'functional test' as to whether such item could be said to be 'electronic goods'. The item 'Capacitors' has been expressly included in the list prepared by the Electronic Commission and hence it was not open to the Tribunal to apply 'operating principle' or 'user test' and the High Court was wholly justified in interfering with the order passed by the Tribunal. The item 'Capacitors' is subject to payment of tax at a concessional rate. The order passed by the High Court, to that extent is, therefore, upheld. It is, however, made clear that if any assessee had collected an amount at a higher rate of tax from its customers than the concessional rate as held by us, it is open to the Revenue to take appropriate proceedings in accordance with law for the recovery of such amount. The excess amount, if any, recovered by any assessee towards tax shall have to be paid by such assessee to the Government.
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