Case Law Details
Saghay Rubber Products Vs Joint Commissioner (Madras High Court)
Madras High Court held that two wheeler fan belts falls under entry 30 of Part-C of TNGST Act attracting 5% tax and tractor fan belts are specifically found mentioned under entry 27 of Part-B of TNGST Act attracting 3% tax. Hence, it is not right to invoke general entry 50 to the same.
Facts- The appellant is a manufacturer of automobile fan belts and an assessee under the files of the second respondent herein. The dealer was originally assessed for the taxable turnover of “two-wheeler and tractor fan belts” to tax at 5% and 3% respectively by the second respondent herein. However, it was re-assessed at 8% on the ground that the above said item of goods were specifically included under Entry 50(vi) of Part-D of the first schedule of TNGST Act 1959 for the assessment year 1993-1994 and 1994-1995. The said re-assessment order was challenged by the dealer before the Appellate Assistant Commissioner (CT) and he was pleased to allow the appeal on the ground that the goods are only meant for two-wheeler and tractors which are liable to be taxed at 5% and 3% respectively. As against the said order, the first respondent, The Joint Commissioner (CT)-III, had initiated suo moto revision proceedings under Section 34 of TNGST Act, 1959.
Based on the said findings, the first respondent classified the said goods as rubber products and assessed at 8% under item 50(vi) of Part-D of the first schedule of TNGST Act. However, the first respondent had deleted the penalty imposed u/s. 12(3)(b) of TNGST Act. Challenging the said order, the present tax case has been filed by the dealer.
Conclusion- It is clear that the said goods would clearly fall within entry 30 of Part-C of the first schedule attracting 5% tax for the two wheeler parts. As far as the tractor belts are concerned, they fall under entry 27 of Part-B of the first schedule attracting 3% tax.
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