2019 (3) TMI 1361

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.....11937/2017 1. Leave granted. 2. This appeal is filed against the final judgment and order dated 05.01.2017 passed by the High Court of judicature for Rajasthan at Jaipur Bench, Jaipur in S.B. Sales Tax Revision Petition No.114 of 2016 whereby the High Court dismissed the revision petition filed by the appellant herein. 3. The appeal involves a short point as would be clear from the undisputed facts stated infra. 4. The appellant herein-State of Rajasthan (Commercial Tax Department) is the revision petitioner whereas the respondent herein is the respondent of the revision petition before the High Court out of which this appeal arises. 5. The respondent is engaged in the business of trading of spare parts of mining machinery, ....

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....as 12.5%. 11. The CTO accordingly initiated the assessment proceedings against the respondent for the Assessment Year 2007-2008. By assessment order dated 16.03.2009, it was held that the respondent was liable to pay VAT at the rate of 12.5% under the Residuary Entry of Schedule V of the VAT Act. Since the respondent had deposited the tax at the rate of 4% treating the goods in question as falling in Entry 155 of Schedule IV, the notice was issued to the respondent to pay the difference amount of VAT along with penalty and the interest payable under the VAT Act. 12. The respondent felt aggrieved and filed appeal before the Deputy Commissioner (Appeals). By order dated 02.12.2010, the Appellate Authority allowed the appeal and set asid....

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....ng the legality and correctness of the impugned order reiterated the same submissions, which were urged before the High Court. 18. In substance, his submission was that the goods in question are chargeable to tax at the rate of 12.5%, which is the rate prescribed in the Residuary Entry of Schedule V of VAT Act because, according to the learned counsel, there is no specific Entry under which the goods in question fall for being taxed at a specified rate. 19. In other words, the submission was that since the goods in question are not specified in any of the Entries in Schedule IV and Schedule V of the VAT Act and nor they are the parts of the Mobile Cranes, the only Entry under which they can be taxed is the Residuary Entry of Schedule ....

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.... the Act. 12.5     25. Mere reading of Entry 155 quoted above would go to show that the goods called Hydraulic excavators (earth moving and mining machinery), Mobile Cranes and Hydraulic Dumpers (including parts thereof) are chargeable to tax at the rate of 4%. 26. It may be mentioned here that the expression "including parts thereof" was inserted in the Entry 155 by an amendment w.e.f. 09.05.2006. It, therefore, indicates that the parts of the goods specified in the Entry were not chargeable to tax at the rate of 4% prior to 09.05.2006 but became chargeable at the rate of 4% only on and after 09.05.2006. 27. This Court has laid down the test as to how the Court should decide the question as to whether a particul....