Charger Not Taxable Separately When Sold With Phone Under Single MRP: SC

Naresh Kumar Gupta Vs State of Punjab & Anr. (Supreme Court of India)

Supreme Court held that when a cell phone is sold along with a charger there is only one Maximum Retail Price and hence charger cannot be taxed separately under Uttar Pradesh Value Added Tax Act, 2007 [UP VAT Act].

Facts- The issue involved herein is taxability of charger of the cell phone under Entry 28 Part B of Schedule II under Uttar Pradesh Value Added Tax Act, 2007.

Conclusion- Held that when a cell phone is sold along with a charger, there is only one Maximum Retail Price (MRP) stated on the packaging and therefore, Entry 28 has to be read in the context of the said facts. We have considered the arguments advanced at the bar, in light of the judgment of this Court in Nokia India Private Limited’s case and in light of the detailed discussion made by the High Court distinguishing the aforesaid judgment. Hence, the Special Leave Petitions are dismissed.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

List on 05.03.2025 to be heard immediately after the fresh cases are heard.

SLP(C) NO. 26270-26273 OF 2019 (Item 11.3):

We have heard Mr. Yogendra Aldak, learned counsel for the petitioner(s) and Dr. Manish Singhvi, learned senior counsel for the respondent(s)-State and others.