Tax classification of water-handling pumpsets turns on product nature, not horsepower, and attracts 5% under the relevant entry.

Centrifugal and monoblock submersible pumpsets for water handling are classified under Entry 26(a) of Part-B of the First Schedule to the Tamil Nadu Value Added Tax Act, 2006, because the entry refers to the nature of the pumpset and does not impose any horsepower limit. The clarification under the Tamil Nadu Value Added Tax Act and Rules therefore confirms that such pumpsets are taxable at 5% irrespective of horsepower, consistent with the authority's earlier view on the same entry.

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Issues: Whether centrifugal and monoblock submersible pumpsets for water handling, irrespective of horsepower, fall under Entry 26(a) of Part-B of the First Schedule to the Tamil Nadu Value Added Tax Act, 2006 and are taxable at 5%.

Analysis: Section 48-A(1) of the Tamil Nadu Value Added Tax Act, 2006 and Rule 12-A of the Tamil Nadu Value Added Tax Rules, 2007 empower clarification on rate of tax. Entry 26(a) specifically covers centrifugal and monoblock submersible pumpsets for water handling and does not prescribe any horsepower limit. On the wording of the entry, the absence of a horsepower specification means the classification is determined by the nature of the pumpset and not by its capacity. The authority also relied on its earlier clarification treating such pumpsets as falling within the same entry.

Conclusion: Centrifugal and monoblock submersible pumpsets for water handling, irrespective of horsepower, fall under Entry 26(a) of Part-B of the First Schedule to the Tamil Nadu Value Added Tax Act, 2006 and attract tax at 5%.

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