TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 566
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....iness of manufacture and sale of handheld electronic ticketing machines(ETMs). The assessee has sold handheld electronic ticketing machines to KSRTC. For the period 2004-05 to 2006-07 they have paid value added tax at 12.5% because of the residuary entry as it does not fall under any of the schedules. However, they realized that the said product falls under entry 8471 as it is an I.T. product and therefore they paid 4% tax thereon. The assessing authority issued a proposition notice dated 14.12.2009 as he found discrepancies in the books of accounts in relation to the returns of turnover declared in VAT100 and CST and percentage of tax paid. The assessee replied. However, the assessing authority passed the order under Section 39 of the KVAT....
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.... notification dated 31.3.2006 issued including in entry 43 of the III Schedule. Therefore, the assessee is entitled to the benefit of 4% tax as the product in question falls within the III Schedule. 4. Per contra, the learned counsel for the revenue supporting the impugned order contended that the product in question falls under entry 8470 in the Central Excise Tariff Act which is not an IT product. It neither falls at Sl.No.3 or Sl.No.4 of the notification and therefore, the assessee is not entitled to tax at 4% and rightly the authorities have levied tax at 12.5%. Therefore, she submits that no case is made out for interference. 5. In the light of the aforesaid facts and rival contentions, the question of law that arises for considerati....
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....cally process this data, performs arithmetic computations without human intervention and generates the printouts of electronic tickets. Apart from this all necessary reports like MIS reports, number of passengers in the bus etc. can be generated with a single click of the button. All the details performed by the device can be downloaded to the main server for data storage. Advance features like Smart Card Reader, GSM/GPRS, GPS, Wi-Fi, Bluetooth etc, are inbuilt in these devices. Li-ion battery with inbuilt charge control and termination enables the portability of the machine as in the case of other mobile devices." 7. Therefore, it was contended that this electronic ticketing machine is an IT product. Schedule-III Item No.53 namely IT prod....
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....oresaid description is different in any manner from the corresponding description in the Central Excise Tariff Act, 1985, then only those commodities described as aforesaid will be covered by the scope of this notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of this notification. (3) Subject to Explanation(2), for the puropose of any entry contained in this notification, where the description against any heading or, as the case may be, subheading, matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered for the purposes of the said tariff under that heading or sub-heading ....
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....stagefranking machines, ticket-issuing machines and similar machines, incorporating a calculating device, cash registers. 8470 10 00 Electronic calculators capable of operation without an external source of electric power and pocket-size data recording, reproducing and displaying machines with calculating functions. 8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included." 9. 8471 in the notification at Sl.No.4 is the replica of the description contained in the Central Excise Tariff Act at 8471. In the Central Excise Tariff Act, again....
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....hat it is versatile bus ticketing machines from the pioneers of ticketing machines in India. Introduces compact and rugged hand held bus ticketing machines. Over 10,000/- machines in use in various State Road Transport Corporations including KSRTC, NEKRTC, NWKRTC AND BMTC in Karnataka and KSRTC, Kerala apart from various private organizations in India and Abroad. In the hind portions, they have given the specifications of the hardware. 10. Therefore, in the light of the aforesaid judgment of the Supreme Court, how the goods are understood in the commercial sense has to be taken into consideration for the purpose of classification of the goods and the scientific and technical meaning has no place. Therefore, when the goods involved is a por....