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Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreA voluntary organisation established on 6th July 1949, BCAS has presently more than 9,000 members from all over the country. BCAS is a principle-centered and learning-oriented organisation promoting quality service and excellence in the profession of Chartered Accountancy.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
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The Company sold cell phone in a composite package, without any extra charge for supply of battery charger, which is a part of cell phone. The entry 60(6)(g) of Schedule B to the Punjab VAT Act, 2005 covers parts of the products mentioned therein. The Assessing Authority levied tax @12.5% on differential amount for supply of battery charger and not at concessional rate applicable to cell phone. This view of Assessing Authority was upheld by the Tribunal also. The company filled appeal to the Punjab and Haryana High Court against the decision of the Tribunal.
Held:
(1) When a cell phone is sold in a composite package, without any extra charge for the battery charger, the battery charger is a part of cell phone. Mere fact that the battery charger was not affixed to the cell phone will not mean that it is a different item. The entry in question cannot be read as excluding the battery charger which is necessary for use of the cell phone.
(2) Compared to the value of the cell phone, value of the charger is insignificant. Cell phone cannot be used without charger. On these undisputed facts the charger cannot be excluded from the entry for concessional rate of tax which applies to cell phones and parts thereto. Accordingly the appeal was allowed.