Same rate of tax applicable on Mobile Phone & Charger sold together as one unit under Karnataka VAT Act

State Of Karnataka & Anr. Vs Micromax Informatics Ltd. (Supreme Court of India)

The Hon’ble Supreme Court in the case of State of Karnataka v. M/s. Micromax Informatics Ltd. [Special Leave Petition (Civil) (Diary No. 40320 of 2023) dated December 08, 2023] dismissed the Special Leave Petition filed by the Revenue Department and refused to interfere with the judgement passed by the Hon’ble Karnataka High Court wherein it was held that, same rate of tax would be applicable on both Mobile Phone and Mobile Phone Charger sold together as one unit under Karnataka VAT Act.

Facts:

The Revenue Department (“the Appellant”) filed a Special Leave Petition before the Hon’ble Supreme Court of India against the judgement passed in favour of M/s Micromax Informatics Ltd. (“the Respondent”) in State of Karnataka and Others v. Micromax Informatics Ltd. (STRP No. 27 of 2022 dated February 14, 2022) wherein the Hon’ble Karnataka High Court relying upon the judgement in the case of State of Karnataka and Others v. M/s Intex Technologies and Others (STRP No.  8 of 2022 dated February 10, 2023) held that as per the definition stated in the Notification issued under the Karnataka VAT Act, the Mobile Phone Charger sold along with Mobile Set in a composite pack attracts the same rate of tax as Mobile Phone.

Issue:

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