Tablet computer classification under VAT rate entry challenged, with interim protection granted against coercive recovery pending hearing.

Tablet computers were disputed under the Gujarat VAT rate entry for information technology products, with reliance placed on the corresponding Central Excise Tariff classification and a CBEC circular treating them as heading 8471 30. The assessment order was also challenged for not giving reasons for rejecting that classification. On that basis, notice was issued and interim protection was granted by restraining coercive action under the assessment order pending hearing.

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Issues: Whether the classification of tablet computers under Entry No. 45 of Schedule II to the Gujarat Value Added Tax Act, 2003 required consideration in light of the adopted tariff classification under the Central Excise Tariff Act, 1985, and whether interim protection was warranted pending hearing.

Analysis: The petitioner's case was founded on the statutory rate entry for information technology products, the corresponding tariff description in Chapter 84 of the Central Excise Tariff Act, 1985, and the CBEC circular treating tablet computers as classifiable under heading 8471 30. The challenge also pointed to the absence of reasons in the assessment order for rejecting that classification. In view of those contentions, notice was directed and interim protection was considered appropriate.

Outcome: Notice issued returnable on the specified date and the respondents were restrained from taking coercive action pursuant to the assessment order during the interim period.

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