TaxTMI 
TaxTMI 
2026 (1) TMI 646
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....excisable goods, specifically sound systems. In respect of AY 2003 - 04, it had offered to tax the turnover from sales of car audio systems at the rate of tax of 12.5% in terms of Entry 14(vi)/Part D/First Schedule of the Tamil Nadu General Sales Tax, 1959 ('Act'/'TNGST Act'). 2. The returns were originally accepted and thereafter a notice for revision of assessment was issued on 06.12.2006 proposing to revise the assessment by levying tax at 20% plus surcharge on the ground that the product sold under the logo 'Kenwood car audio' constitutes sale of an imported product. Despite objections, an assessment came to be completed on 28.02.2007 confirming the assessment proposals and imposing penalty under Section 16(2) for concealment of turn....
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.... India and remittance of Central Excises duty on it still it is an imported product merely because some of the parts and accessories used therein were imported from foreign countries by the branch office at Noida and not by Chennai Office? 4. Whether the Tribunal is correct in concluding that the petitioner had entered into a license agreement with a foreign company to use the pattern and technical know-how to manufacture audio system in India and so the manufacture audio system gets the character of imported products? 5. Whether the agreement entered with a foreign company outside India can be determinative factor to determine the rate of sales tax on the product manufactured in India?' 6. We have heard Ms.Rekha Kumari....
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.... a third party to make or manufacture any parts or components identical or similar to KENWOOD's Custom Parts. "KENWOOD'S CUSTOM PARTS" here mean parts or components in which LICENSOR's original ideas, designs, technology, know-how, expertise or software is involved or used or incorporated. KENWOOD's CUSTOM PARTS are listed in Annex "B" attached hereto and made a part of this Agreement.' 11. Kenwood custom products have been stipulated in Annexure B that reads as follows:- 'Annex "B" KENWOOD'S CUSTOM PARTS Effective from October 1, 2003 The Printed Circuit Board with LICENSOR's circuit design. The Integrated Circuit with LICENSOR's software built-in. The Mechanism for CD/VC....
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....NSED PRODUCTS shall be of good quality and shall meet the standards and specifications of the parts which LICENSOR uses for its own production. To secure such good quality and standard, LICENSEE shall notify LICENSOR beforehand of its intention to procure and use Locally-procured Parts and shall obtain LICENSOR's prior written consent thereto. Upon the request of LICENSOR, LICENSEE shall send samples of such Locally procured Parts to LICENSOR at the expense of LICENSEE for inspection by LICENSOR and shall not place orders for such Locally procured Parts before LICENSOR's approval has been obtained. LICENSOR shall not be responsible for any trouble that may arise from difference between the samples of the parts, whi....
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....ported 5 TDF-KRC-288 Pcs 10209008 1 Imported 6 Plastic Case KRC-288 Pcs 10212008 1 Indegeneous 7 TDM KRC-288 Pcs 10216003 1 Imported 8 Fuse 10AMP (For Set) (12100031) Pcs 10233002 1 Indegeneous 9 Escutechion-KRC-288 Pcs 10212003 1 Indegeneous 10 Tie White (Small) Pcs 10325005 1 Indegeneous 11 Foam Cushion (16*16*5) Pcs 10301008 1 Indegeneous 12 Cover Top-KRC-288 Pcs 10210015 1 Imported 13 MANUAL-KRC-288 Pcs 30201004 1 Indegeneous 14 KEY Pcs 10315009 1 Indegeneous 15 Mounting Bracket-KRC-288 Pcs 10210030 1 Indegeneous 16 BOX WHITE Pcs ....
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....ones of all kinds including record players, radio gramophones, gramophones records, matrices for records and record changers, sound recording and reproducing equipments including dicta-phones, car cassette players, tape-decks, tape players, compact disc players including a combination of any them with or without wireless reception instrument [and pagers]' 18. The revenue has relied upon the entry relating to Imported items falling under Schedule Eleven/entry 9 that reads as follows:- Imported cigarettes, medium density fibre boards, textiles and other items falling in Parts D and E of the First Schedule First sale 20 per cent 19. It is true that some key elements of the car audio systems have been imported by the petiti....