TaxTMI 
TaxTMI 
2017 (5) TMI 1808
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.... being manufactured and sold by the assessee, namely "MFD" and "FM", on which rate of 4% is applicable, whereas the Assessing Officer was of the view that it entails a rate of 12.5%. Accordingly, a show cause notice was given and taking into consideration the objections and reply filed on behalf of the assessee the claim of the assessee was not accepted and the AO vide assessment orders levied tax @ 12.5%. Simultaneously interest was also levied and also penalty u/s 61 was imposed by the AO. 3. The matter was carried in appeal by the assessee before the DC(A), who upheld the levy of tax and interest but insofar as the penalty u/s 61 is concerned, he directed it to be deleted. 4. The matter was carried in appeal, both by the assessee as well as the Revenue. 5. The Tax Board in the impugned order took up all the appeals in between the parties and insofar as issue about "Multi Functional Device" is concerned, allowed the claim of assessee in the light of judgment rendered by this court in the case of M/s Kores (India) Ltd v. Assistant Commissioner, Commercial Taxes [SB STR 24/2015] and M/s Hewlett-Packard India Sales Pvt. Ltd v. Dy. Commissioner (Appeals) [SB STR 21/2010] decided o....
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....& order of this court in the case of M/s Hewlett-Packard India Sales Pvt. Ltd v. Dy. Commissioner (Appeals) (supra) stands dismissed by the Apex Court in Special Leave to Appeal (C) Nos.15953- 15958/2016 vide order and judgment dt 13.4.2017 and thus, the issue being covered, the petitions deserve to be dismissed. 10. Insofar as penalty is concerned, learned counsel for the assessee contends that admittedly it is a case of classification and merely because the Revenue applies a rate of 12.5% against 4%, is no reason to impose or levy penalty and relied on the judgment rendered by Apex Court in the case of M/s Shree Krishna Electricals v. State of Tamil Nadu & Others (2009) 23 VST 249 (SC). 11. Per contra, learned counsel for the Revenue, insofar as the petitions preferred by the assessee is concerned, contended that by no stretch of imagination the "FM" can be covered under entry 7 which is "electrical apparatus" and contends that the finding reached by all the three authorities in unison is required to be upheld. Learned counsel further contends that it was for the assessee to prove that it falls within entry 7 and merely making a claim unsupported by any material or evidence, is....
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....e concepts for fax technology were developed in the 19th century, widespread use did not occur until the 1970s, when inexpensive means of adapting digitized information to telephone circuits became common." "A "fax machine" usually consists of an image scanner, a modem, and a printer combined into a single package. The scanner converts the content printed on a physical document into a digital image, the modem sends the image date over a phone line to another device, and the printer at the far end produces a copy of the transmitted document. Some fax machines can be connected to a computer, and the individual components - the scanner, printer, and occasionally the modem - can be used independently. Such devices are usually called multifunction printers or MFPs. Fax capabilities are also offered as options for many high-volume workgroup printers and photocopiers." 15. On perusal of the above and taking into consideration the entry 7, in my view, the "FM" would certainly can be said to be covered under entry 7 of Schedule-IV reproduced hereinbefore. It is a case where "FM" as noticed hereinbefore becomes operative only when there is a telephone line/connection and unless and unti....
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....tor, keyboard, printer etc. Some of the peripherals may be mounted or housed in the computer cabinet itself like Hard Disc, CD ROM, Mic etc. Sometime peripherals can be separate and have to be attached to the Central Processing Unit. The term "peripheral" has been defined in Oxford Dictionary to mean as under:- '(of a device) able to be attached to and used with computer, though not an integral part of it.' 17. A multi functional machine can be a computer peripheral, if its principal or sole purpose is to be attached and function as a computer ancillary. A multi functional machine will be and qualify as a computer peripheral when its main/predominant purpose is to scan documents, load data or work as an input devise of the computer or work as an output device to take printouts etc. from the computer. At the same time, there can be photocopiers, whose main purpose is to copy or act as a duplicating machine to make copies of documents. Incidentally, they may also be used as a printer. This would require elucidation and examination of factual matrix in each case and the machine in question on case to case basis." Therefore, upon a detailed analysis and with reference to vario....