Rate of Tax – Entries in Schedule – Speakers for Car Stereos – Are Accessories of Car Stereos – Taxable as Electronic Goods and Not as Sound Transmitting Equipment – Entries 55 and 134 of Schedule I of the Kerala General Sales Tax Act, 1963.

Rate of Tax – Entries in Schedule – Speakers for Car Stereos – Are Accessories of Car Stereos – Taxable as Electronic Goods and Not as Sound Transmitting Equipment – Entries 55 and 134 of Schedule I of the Kerala General Sales Tax Act, 1963.

The dealer sold car stereos with or without speakers which was taxed @8% as electronic goods under Schedule Entry I 55 of the Act, whereas on sale of speakers without stereos, the tax was levied at 12% as sound transmitting equipment including loud speakers covered by the Entry 134 of Schedule I of the Act. The Tribunal allowed the appeal and held that speakers when sold without car stereos are also electronic goods taxable at 8% under Entry 55 of Schedule I. The Department filed revision petition before the Kerala High Court against the impugned order of the Tribunal.

Held

Under Entry 134 of Schedule I, ‘Sound Transmitting Equipment Including Loud Speakers are covered. The Department admitted that car stereos are not covered by Entry 134 and are covered by the general Entry 55 relating to electronic goods. The speakers suitable for attachment of car stereos will also be covered by Entry 55 of the Schedule I being accessories to electronic goods. The loud speakers which are not accessories to any electronic items like stereo, car stereos and radios are covered by Entry 55 and liable to tax @8%. The HC accordingly dismissed the revision petition filed by the Department.