Eaton Power Quality Pvt. Ltd. v. CTO

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The Tax Publishers 2019 TaxPub(VAT) 0401 (Mad-HC) : (2020) 091 ITPJ (V) 0235 Eaton Power Quality Pvt. Ltd. v. CTO TAMIL NADU VALUE ADDED TAX ACT, 2006 --Assessment--Classification of goodsUninterrupted Power Supply (UPS) and battaries ----Where the central issue was the factual dispute as to what the product was i.e., whether it was Voltage Stabilizer or UPS, be that as it might not be necessary to advert to this aspect further and make any discussion on this aspect of the matter as the Court directed authorities to give one more personal hearing. --Assessee was engaged in the business of certain products and were 'Uninterrupted Power Supply' and battaries thereto, according to assessee, they were voltage stabilizers. The First Schedule to Act gives description of goods in three parts, namely Part-A, Part-B and Part-C. Description of goods which find place in Part -A are taxable at 1%, those which find their place in Part-B are taxable at 5% and others which find their place in Part-C are taxable at 14.5%. While voltage stabilizers were shown in Part -C, UPS was shown in Part-B. It follows as a sequitur that if the products manufactured by assessee was UPS, it would be taxable only at 5%, whereas if it was voltage stabilizers, the tax liability will be at 14.5%. *Held:* A perusal of the case of Canon India Pvt. Ltd. v. State of Tamil Nadu Through Secretary 2013- VIL-53-MAD : 2014 TaxPub(EX) 1045 (Mad) revealed that it is a matter touching upon classification of a undisputed product and not on the question of a factual dispute as to what the product itself is. In the instant case, the central issue was the factual dispute as to what the product was, i.e., whether it was Voltage Stabilizer or UPS. Be that as it might not be necessary to advert to this aspect further and make any discussion on this aspect of the matter as the Court considered it appropriate to direct authorities to give one more personal hearing. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2019 TaxPub(VAT) 0401 (Mad-HC) : (2020) 091 ITPJ (V) 0235

Eaton Power Quality Pvt. Ltd. v. CTO

TAMIL NADU VALUE ADDED TAX ACT, 2006

--Assessment--Classification of goodsUninterrupted Power Supply (UPS) and battaries ----Where the central issue was the factual dispute as to what the product was i.e., whether it was Voltage Stabilizer or UPS, be that as it might not be necessary to advert to this aspect further and make any discussion on this aspect of the matter as the Court directed authorities to give one more personal hearing. --Assessee was engaged in the business of certain products and were 'Uninterrupted Power Supply' and battaries thereto, according to assessee, they were voltage stabilizers. The First Schedule to Act gives description of goods in three parts, namely Part-A, Part-B and Part-C. Description of goods which find place in Part -A are taxable at 1%, those which find their place in Part-B are taxable at 5% and others which find their place in Part-C are taxable at 14.5%. While voltage stabilizers were shown in Part -C, UPS was shown in Part-B. It follows as a sequitur that if the products manufactured by assessee was UPS, it would be taxable only at 5%, whereas if it was voltage stabilizers, the tax liability will be at 14.5%. Held: A perusal of the case of Canon India Pvt. Ltd. v. State of Tamil Nadu Through Secretary 2013- VIL-53-MAD : 2014 TaxPub(EX) 1045 (Mad) revealed that it is a matter touching upon classification of a undisputed product and not on the question of a factual dispute as to what the product itself is. In the instant case, the central issue was the factual dispute as to what the product was, i.e., whether it was Voltage Stabilizer or UPS. Be that as it might not be necessary to advert to this aspect further and make any discussion on this aspect of the matter as the Court considered it appropriate to direct authorities to give one more personal hearing.