AI Drafter 
TaxTMI 
TaxTMI 
2025 (9) TMI 255
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....mentioned appeals, they are being heard analogously and disposed of by this common order. 2. This bunch of VAT Appeals have been filed by the appellants being aggrieved by the orders dated 29.12.2021 passed by the M.P. Commercial Tax Appellate Board, Bhopal, Bench at Indore in the respective cases as mentioned below: VATA No. 25/2022 Case No. A/109/CTAB/IND/17 Case No. A/111/CTAB/IND/17 Case No. A/274/CTAB/IND/16 Case No. A/110/CTAB/IND/17 VATA No. 24/2022 Case No. A/107/CTAB/IND/17 (VAT) Case No. A/273/CTAB/IND/16 (VAT) Case No. A/108/CTAB/IND/17 (VAT) VATA No. 26/2022 Case No. A/114/CTAB/IND/17 Case No. A/275/CTAB/IND/16 Case No. A/115/CTAB/IND/17 VATA No. 27/2022 Case No. A/112/CTAB/IND/17 ....
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....s assessed and levied VAT at the rate of 4% on the sale of Woollen Felt Component, treating it to be Fabric. Thereafter, the assessment was reopened on the basis of an audit objection and VAT at the rate of 13% was levied, treating it as Machinery Part. Accordingly, for the subsequent years 2012-13 and 2013-14, the appellant has been assessed and directed to pay the VAT at the rate of 13%. Appellant preferred an appeal before the appellate authority, but the same was dismissed. Thereafter, the appellant approached the M.P. Commercial Tax Appellate Board and vide impugned order dated 29.12.2021, all the appeals were dismissed. Hence, this appeal is before this Court. 7. The learned counsel of appellant has proposed the following substanti....
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....on what is to be considered is the inherent and essential characteristics of the goods and not the nomenclature given to it by the recipient. The Apex Court in the case of Porritts & Spencer (Asia) Ltd. Vs. State of Haryana, (1979) 1 SCC 82 has held that 'dryer felts' used in the paper industry cannot be held to be a machine part where it comes under the category of 'textiles'. It is observed that the use of textiles in a fast-developing economy is manifold, and it is quite common to find 'textiles' being used even for industrial purposes. Shri Goyal learned counsel submits that by applying the same logic, the word Felt can be referred to as 'fabric' and not a machinery part. Hence, the orders passed by the subordinate t....
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.... popular test, has passed the well reasoned order denying to classify 'Woolen Felt Component' as fabric under Schedule II Part II Entry 34 when it is essentially used as a machinery part. The Appellate Board has appreciated the earlier orders passed under Section 42-B of the M.P.General Sales Tax Act, 1958 and Section 70 of the M.P. Value Added Tax Act, 2002 and maintained the consistent view that the Woollen Felt Component is a machinery part and not a fabric. 12. Shri Gautam, learned Government Advocate has placed reliance on a judgment passed by the Apex Court in case of Westinghouse Saxby Farmer Ltd. vs. Commissioner of Central Excise Calcutta, (2021) 5 SCC 586 wherein it has been held that the common parlance test of commerc....
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.... passed by the Apex Court in case of Porritts & Spencer (supra) in the present case is concerned, the Apex Court has considered Item No. 30 of Schedule 'B' of the Punjab General Sales Tax Act, 1948 which relates to all varieties of cotton, woolen or silken textiles including rayon, artificial silk or nylon whether manufactured by handloom or powerloom or otherwise, but not including pure silk fabrics, carpets, etc. The question was whether the 'dryer felt' manufactured by the assessee fell within the category of goods to be exempted from sales tax by treating it as a textile, as provided in Item 30 of Schedule B of the Punjab General Sales Tax Act, 1948. In the aforesaid Schedule, there is a consideration of all variants of cotton a....