Industrial Use Prevails: Felt Components Taxed as Machinery Parts; Higher VAT Upheld

Blue Chip Felt Vs Commercial Tax (Madhya Pradesh High Court) Madhya Pradesh High Court heard a batch of VAT appeals challenging common orders dated 29.12.2021 passed by the M.P. Commercial Tax Appellate Board, which had upheld assessments classifying “Woollen Felt Components” as machinery parts taxable at a higher rate. The appellants, partnership firms engaged in manufacturing felt components tailored for industrial machinery, contended that felt is a textile/fabric and should be taxed under the lower-rate fabric entries of the MP VAT Act, 2000. Initially, for certain years, the goods we...