Sunglasses Taxable at Higher VAT Because They Are Not Spectacles: P&H HC

Himalaya Optical Centre Pvt Ltd Vs State of Punjab (Punjab and Haryana High Court) The Punjab and Haryana High Court decided a batch of connected VAT appeals concerning the classification of sunglasses under the State VAT laws applicable in Punjab and Haryana. The core issue before the Court was whether sunglasses could be classified as “spectacles” under a specific entry in the VAT schedule, which attracted a concessional rate of tax, or whether they were liable to tax under the residuary entry attracting a higher rate of 12.5% VAT. The appellants argued that sunglasses are a form of eyew...