TaxTMI 
TaxTMI 
2012 (10) TMI 974
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....ars. The common issue raised in all the three writ petitions is whether "inkjet cartridges" and "tonor cartridges" are covered by entry 4 of Part B of the Second Schedule to the Assam Value Added Tax Act, 2003, which lists items attracting lesser rate of tax or covered by residue entry in Schedule V providing higher rate of tax. The petitioner is engaged in sale of IT products and is registered under the Assam Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956. During the assessment proceedings for the assessment year 2008-09, the petitioner claimed that the above items were covered by lower rate of tax which plea was not accepted. Assessment order dated September 12, 2008 was passed accordingly and demand for higher rate of ta....
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....f Ghaziabad Engineering Co. (P) Ltd. v. Commissioner of Sales Tax [1991] 80 STC 243 (Delhi), that a fuel injection pump can neither be regarded as an accessory nor a spare part of motor vehicle. Therefore, the averment of the dealer for treating cartridges under entry Sl. Nos. 3 and 4 of the Second Schedule, Part B, is found not acceptable. As regards the contention of H.S.N. classification adopted under the Central Excise Tariff Schedule enumerating the item inkjet cartridges under the broad head 8443 along with printers, ink, parts, etc. it would be worthwhile to remember that the State Legislature enjoys wide freedom in choosing the rate of tax to be imposed on the subject covered by its allotted legislative field and is, therefore, no....
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....d Schedule for industrial inputs and packing materials which does not include HSN 84.71 (i.e., printers). The State Legislature enjoys wide freedom in choosing the rate of tax to be imposed on the subject covered by its allotted legislative field and is therefore not bound by any system of classification of goods adopted by other bodies. Besides, the contention of the appellant that all the States in India, which have implemented VAT and notified information technology products, have been treating inkjet cartridges and toner cartridges as 'parts and accessories of computer peripherals' is not correct. The Commissioner of Commercial Taxes, U.P., under section 59 of the VAT Ordinance, [2008] 36 NTN 50, (Commissioner decisions) held i....
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....isy wheel printer, graphic printer, plotter, laser jet printer and ink jet printer, etc. 6. There is no dispute that toners and cartridges are used in the above kinds of printers. Therefore, toners and cartridges are part and accessories of goods mentioned in HSN 84.71 and therefore, covered by entry 41A(xxv) of the DVAT Act, 2004." The learned counsel for the petitioner also relied upon the judgment of the honourable Supreme Court in State of Uttar Pradesh v. Kores (India) Ltd. [1977] 39 STC 8 (SC); [1976] 4 SCC 477 and Annapurna Carbon Industries Co. v. State of Andhra Pradesh [1976] 37 STC 378 (SC); [1976] 2 SCC 273. In Kores (India) Ltd. [1977] 39 STC 8 (SC); [1976] 4 SCC 477, it was held that typewriter ribbon was an accessory of the....
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....erve as aids. The same item may be an accessory of more than one kind of instrument." The learned counsel for the Revenue submitted that in Part A of the Second Schedule, entry 50 provides for "printing ink excluding toner and cartridges" and thus expression toner and cartridges has been expressly used wherever so intended and on that ground the goods in question should be treated as falling the residue entry. After due consideration, we are of the view that the question has to be answered in favour of the assessee. The items in question are integral part of printer which undisputedly is covered by entry 3. Thus, we are in agreement with the view taken by the Delhi High Court. Principle laid down in judgments of the honourable Supreme Cou....