Tax classification under VAT turns on the specific entry first; capital goods definitions cannot override the taxing schedule.

Crankshafts and camshafts used in refrigerator compressors were discussed for classification under the Uttar Pradesh VAT Act, with the focus on whether Entry 26 of Schedule-II Part-A covered them as machinery, equipment, apparatus, tools, moulds, dies, or component parts and accessories. The analysis states that tax classification must be determined first by the specific taxing entry, and only then by the residuary entry if the specific provision does not apply. It further notes that the definition of capital goods in Section 2(f) does not itself control tax rate or classification. The Tribunal's reliance on that definition was therefore legally irrelevant, and the matter was remitted for fresh decision.

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Issues: Whether crankshaft and camshaft used in compressors for refrigerators fall within Entry 26 of Schedule-II Part-A of the Uttar Pradesh Value Added Tax Act, 2008, and whether the definition of capital goods in Section 2(f) can control their classification for tax purposes.

Analysis: Entry 26 of Schedule-II Part-A expressly covers machinery, equipment, apparatus, tools, moulds, dies and their component parts and accessories, while Section 4(1)(a) fixes the tax rate on goods named in Schedule II. The definition of capital goods in Section 2(f) is not a taxing entry and does not itself determine the rate or classification of goods. Classification must be made first by reference to the specific taxing entry, and a residuary classification can be reached only if the specific entry does not cover the goods. The reasoning that the items used in compressors for home appliances are not machinery merely because they are not capital goods was held to be legally irrelevant.

Conclusion: The Tribunal's approach was unsustainable. The matter was remitted for fresh decision in accordance with law, and the question of law was left unanswered.

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