Printer cartridges treated as consumables qualify for exemption under the computers and peripherals notification.

Where the statute separately classifies computers, peripherals and consumables, printer cartridges are treated as consumables rather than peripherals. Applying the binding Division Bench view under the TNGST Act, the Madras HC accepted that printer cartridges could not be excluded from the exemption merely because of the revenue's classification argument. The exemption notification for computers and their hardware and peripherals was therefore held to extend to printer cartridges, and the assessee succeeded on the exemption issue.

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Issues: Whether printer cartridges fell within the exemption granted to computers and their hardware and peripherals under the exemption notification issued in relation to resale tax under Section 3-H of the TNGST Act, 1959.

Analysis: The relevant entries in Item 18 of Part-B of the First Schedule separately referred to computers, peripherals and consumables. Printer cartridges were specifically understood as consumables, not as peripherals. Although there was an argument that earlier precedent treated printer cartridges as computer peripherals, the binding Division Bench decision under the TNGST Act, 1959 had already dealt with the same exemption issue and was followed. On that basis, the printer cartridge could not be denied exemption merely because of its classification contention raised by the revenue.

Conclusion: The issue was decided in favour of the assessee, and printer cartridges were held to be entitled to the exemption under the notification.

Ratio Decidendi: Where the statute separately classifies computers, peripherals and consumables, a printer cartridge described as a consumable cannot be denied exemption available to computers and their hardware and peripherals.

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