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2023 (5) TMI 970 - HC - VAT and Sales TaxClassification of goods sold - photo identity cards - to be classified under Entry 71 of Schedule III to the Karnataka Value Added Tax Act, 2003 or under the residuary category under Section 4(1)(b)(iii) of the Karnataka Value Added Tax Act, 2003? - only the specific goods mentioned under Entry 71 of Schedule III to the Karnataka Value Added Tax Act, 2003 merit classification under the said Entry as 'printed material' as well as 'stationery articles' or not? HELD THAT:- The first part of Entry 71 of the Schedule III to the KVAT Act specifies printed materials other than books meant for reading. The Tariff item No. 49.01 of the CET Act includes other products of the printing industry - For the purpose of Chapter 49 of the CET Act, ‘printed’ also means ‘reproduced’ by means of a duplicating machine, produced under the control of a computer, embossed, photographed, photocopies, thermocopied or typewritten. It is relevant to note that, photo identity cards are also produced by using a computer, holograms are embossed, and photographs affixed. Therefore, a photo identity card falls within the definition of ‘other products of printing industry’ under Tariff item No. 49.01 of the CET Act. The Parliament has excluded only certain items and Photo identity card is not one such excluded item. It is settled that if an item is cleared under a particular tariff, by the Central Excise Authority, the same is not disputable by the VAT Authorities - reference can be made to decision in the case of SAMSUNG INDIA ELECTRONICS PVT LTD VERSUS STATE OF GUJARAT [2020 (2) TMI 1247 - GUJARAT HIGH COURT]. The principal contention urged by the Revenue that photo identity cards do not fall under the Entry 71 of Schedule III to the KVAT Act, is untenable because, the KVAT Authority is bound by the classification accepted by the Central Excise Authority - the photo identity cards fall under Entry 71 of Schedule III to the KVAT Act under the category of printed materials other than books meant for reading, and accordingly, taxable at 5%. The revision petition is allowed.
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