M/s. Dax Networks Ltd. Vs Commissioner of Commercial Taxes (Madras High Court)
Petitioner had sought for clarification as regards the rate of tax for switches, hubs and routers as computer peripherals and the Advance Ruling Authority, after examining the matter, found that switches and hubs falls under Central Excise Tariff under 8473; routers falls under Central Excise Tariff heading 8517; as also cables, fall under Central Excise Tariff heading 8544; and are enumerated as Serial Nos.25 and 30 of Notification, dated 30.04.2005 and Serial No.117, in notification, dated 30.04.2005 respectively and they are liable to tax at 4%. The Central Excise Tariff heading 8473, deals with computer systems and peripherals.
In respect of the assessee’s own case, under Karnataka Value Added Tax Act, 2003, Advance Ruling Authority under the KVAT Act has ruled in favour of the petitioner and held that the products dealt with by them are computer peripherals. Thus, for the above reasons, it is held that the impugned clarification is not sustainable, and the clarification issued in favour of the petitioner, dated 24.08.1998 after obtaining the Expert’s opinion of ELCOT will be valid and sustainable for all purpose.
Full Text of the High Court Judgment / Order is as follows:-
