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2014 (2) TMI 628 - HC - VAT and Sales TaxReduction in rate of tax - Under a Notification in G.O.P.No.306(c), dated 5.10.1976, the government reduced the rate of tax to 10% as against 15% leviable on the sale of television sets - Whether, on the facts and in the circumstances of the case and in law, the Tribunal ought to have held that the petitioners are entitled to deduction under Rule 6(c) of the Tamil Nadu General Sales Tax Rules in respect of freight and delivery charges since the charges were charged for and collected separately in the invoices without including in the price of the goods sold - Held that - Admittedly, Entry V of the First Schedule covers many items, one of which is the television set - Thus, when the Notification granting the reduced rate of tax from 15% to 10% was made in exercise of the powers under Section 17 of the Tamilnadu General Sales Tax Act, 1959, the Government though it fit to restrict the same to the sale of television sets alone. Thus, when the Notification does not cover the accessories specifically, going by the decisions of the Apex Court as what accessory would mean, we do not think that the assessee could justify its claim for reduced rate of tax as considered in the Notification to cover the case of sale of accessories too - having regard to the specific reference in the Notification restricting the reduced rate of tax to sale of television sets alone, we do not find any reason to interfere with the order of the Tribunal - Following decision of Mehra Bros. Vs. Joint Commercial Tax Officer, Madras 1990 (11) TMI 144 - SUPREME COURT OF INDIA - Decided against assessee.
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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