October 2014
M/S. Lawrence and Mayo ( India) Pvt. Ltd. vs. S.T.O. and M/S. Sokkia India (P) Ltd. vs. C.S.T.,West Bengal and Another, [2012] 51 VST 423 (WBTT)
By C. B. Thakar Advocate G. G. Goyal Jana K Vaghani Chartered Accountants
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VAT – Classification of Goods-Surveying Instrument- Covered By Entry Relating to Plant –Taxable at 4%, Entry No. 54B, 83 (c), Part I, Schedule C, of The West Bengal Value Added Tax Act, 2003
FACTS
The dealers filed petition before the West Bengal Taxation Tribunal against the order of the Commissioner of Sales Tax holding sale of surveying instrument covered by Schedule CA of the act and taxable at 12.5%.
HELD
Survey is an integral part in the entire process of construction. In fact, the execution of work is done on the basis of data furnished by the surveying instruments. As indicated in the brochures, the surveying instruments, in India, are not just used for taking measurement only. It performs multifarious functions; taking measurement is one of its functions. Judging this aspect, it cannot be called to be a ‘measurement tool’ simpliciter. In view of amplitude of the definition of “plant”, as held in several cases, the surveying instruments squarely come within the extended meaning of ‘plant’ and would be covered by Entry No. 54B, Part I, of Schedule C of the Act. Therefore, it is taxable at 4%. Accordingly, the Tribunal allowed the petition filed by the dealers and set aside the order of the Commissioner.
