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April 2015

HP India Sales P. Ltd vs. State of Assam and Others, [2012] 56 VST 472 ( Gauhati)

By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
Reading Time 1 mins
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VAT- Entry in Schedule-Rate of Tax- Sale of
Inkjet Cartridges and Tonor Cartridges – Falls Under Parts and
Accessories of Computer System and Peripherals –Taxable at 4%, Entry 4
of Part B of Sch. II , The Assam Value Added Tax Act, 2003

Facts
The
petitioner company was engaged in the business of IT products, sold
“inkjet cartridges and toner cartridges” and paid tax @ 4% being covered
by entry 4 of part B of Schedule II of the act relating to parts and
accessories of items listed in serial nos. 1, 2 and 3 which includes
Computer Systems and Peripherals respectively. The vat authority in
three different assessment years levied higher rate of tax of 12.5%
being covered by residual entry which was confirmed by the appellate
authority. The petitioner company filed writ petition before the Gauhati
High Court against the impugned order.

Held
The
items in question are integral part of printer which undisputedly is
covered by entry 3. Principle laid down by SC about interpretation of
“accessory” also lends support to the contention of the assessee.

The
High Court accordingly allowed the writ petition filed by the
petitioner company and allowed the revision of assessment orders
accordingly.

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