2008 (2) TMI 831

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....ANDRAN NAIR J.-The petitioners are dealers in cycle and cycle parts. Bicycles, tricycles and cycle rickshaws and specified parts are brought under four per cent tax under entry 13 of the Third Schedule to the Kerala Value Added Tax Act, 2003. During inspection of the business premises by the audit team, it was noticed that all items were accounted by the petitioners at four per cent tax. The asses....

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....nd Government Pleader for the respondents. The petitioners have cited the decisions of the Supreme Court in Arya Vaidya Pharmacy v. State of Tamil Nadu reported in [1989] 73 STC 346, Kerala Hotel & Restaurant Association v. State of Kerala [1990] 77 STC 253; AIR 1990 SC 913 and State of U.P. v. Deepak Fertilizers Petrochemical Corporation Ltd. reported in [2007] 7 VST 535 in support of their co....

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.... On going through entry 13 of the Third Schedule to the KVAT Act, I find parts of bicycles, tricycles and cycle rickshaws covered by sub-entry (3) are only bicycle rims, bicycle spokes, bicycle hubs, bicycle free-wheels, bicycle saddles, bicycle chain and bicycle wheels. The usual entry to include other parts namely, "other", is absent in entry 13(3) of the Third Schedule. This obviously means t....

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....by virtue of section 6(1)(d) residuary items can be taxed at 12.5 per cent, without requirement of any notification. Even though I agree with this argument of the learned Government Pleader, I feel the matter requires to be considered by the Government and if they feel that higher rate of tax on some cycle parts are not intended, amendment has to be carried out. However, I do not find any discrimi....