2011 (11) TMI 588 - HC - VAT and Sales Tax

Court confirms tax classification of 'aluminium grills' at 12.5%, penalty set aside. Revision petitions dismissed.

The court upheld the tax classification of goods as 'aluminium grills' or 'aluminium grill sections' at 12.5% under the residuary entry, rejecting the ... - Issues involved: Interpretation of goods description for tax classification, imposition of penalty under section 61 of the Act.Interpretation of goods description for tax classification: The petitioner-Revenue challenged the Tax Board's decision that goods sold, described as 'aluminium grill or aluminium grill section,' were not taxable under the Rajasthan Value Added Tax Act, 2003, at four per cent but at 12.5 per cent under the residuary entry in Schedule V. The court held that the change in description to 'metal mesh' by the assessee did not alter the nature of the goods, which continued to be 'aluminium grills' or 'aluminium grill sections.' The absence of weaving or netting process meant the goods did not fit the definition of 'metal mesh' under the Act, thus attracting tax at 12.5 per cent under the residuary entry.Imposition of penalty under section 61 of the Act: The court upheld the decision to set aside the penalty imposed on the assessee under section 61 of the Act. It was noted that the assessee had disclosed all relevant particulars and did not withhold any vital information, justifying the non-imposition of penalty. The court emphasized that the assessee's change in tax classification description did not constitute concealment of material information or furnishing inaccurate particulars, warranting the deletion of the penalty.Conclusion: The court dismissed the revision petitions filed by both the assessee and the Revenue. The concurrent findings of the authorities below regarding the tax classification and penalty imposition were upheld. The revision petitions were thus dismissed, and the costs were easy.