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2014 (2) TMI 628 - HC - VAT and Sales Tax


Issues:
1. Entitlement to deduction under Rule 6(c) of the Tamil Nadu General Sales Tax Rules for freight and delivery charges.
2. Justification of findings regarding the sale of television sets across the counter and the rejection of the claim for deduction.
3. Acceptance of contentions regarding the sale of television sets and entitlement to deduction under Rule 6(c) of the TNGST Rules.

Issue 1: Entitlement to Deduction for Freight and Delivery Charges
The petitioner, a dealer in television sets, claimed a deduction under Rule 6(c) of the Tamil Nadu General Sales Tax Rules for freight and delivery charges separately charged in the invoices. The government had reduced the tax rate on television sets alone, not on accessories. The Assessing Officer rejected the plea for the reduced rate of tax on accessories, charging 15% tax. The Appellate Assistant Commissioner and the Tribunal upheld this decision. The petitioner argued that accessories should be treated on par with television sets for the reduced tax rate, citing relevant case law. However, the Court found that the Notification granting the reduced rate of tax was limited to television sets alone, not covering accessories. The Court referred to the meaning of "accessory" and concluded that the petitioner could not justify the claim for a reduced rate of tax on accessories based on the Notification.

Issue 2: Findings on Sale of Television Sets Across the Counter
The petitioner contested the findings that television sets were sold across the counter, which led to the rejection of the claim for deduction on freight and delivery charges. The petitioner argued that the appellate authority had no power to introduce a new case against them. The Court, however, upheld the Tribunal's decision, emphasizing the specific reference in the Notification restricting the reduced tax rate to the sale of television sets alone. The Court cited relevant case law defining an accessory as an item aiding the main item, supporting the Tribunal's decision.

Issue 3: Contention on the Sale of Television Sets and Entitlement to Deduction
Regarding the contention that television sets could not be sold across the counter due to the need for installation, the Court found no reason to interfere with the Tribunal's order. The Court referenced a case highlighting that an accessory aids in the main item's performance, reinforcing the decision that the reduced tax rate applied only to the sale of television sets. Consequently, the Court dismissed the Tax Case appeal, upholding the Tribunal's decision without awarding costs.

 

 

 

 

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