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1999 (11) TMI 849 - HC - VAT and Sales Tax
Issues:
Rate of taxation on "seat cover for motor vehicle" under the Kerala General Sales Tax Act, 1963 for the assessment year 1993-94. Analysis: The revision application questioned the tax rate on "seat cover for motor vehicle," with the assessee arguing for a 6% rate instead of the 15% levied by the assessing officer. The contention was based on the classification of "spare parts and accessories" under a common head in the original entry No. 86 of the First Schedule of the Act. The assessee argued that since "spare parts" were later taxed at 6%, accessories should also be taxed at the same rate. However, the Revenue argued that different tax rates were provided for in different parts of the Schedule, and a subsequent rate change did not automatically apply to the period in question. To understand the context, the original entry No. 86 included "spare parts and accessories" under the same category, taxed at 15%. Subsequently, through S.R.O. No. 487/93 and S.R.O. No. 1728/93, the rates were modified to tax "motor spare parts" and "motor vehicle spare parts and accessories" at 6%. The court noted that the assessee's claim of a bona fide omission to include "accessory" in the entry was unfounded, as it is the Government's prerogative to specify rates. The crux of the issue was whether "seat covers" qualified as "accessories." The court referred to dictionary definitions and legal precedents to define "accessory" as something that aids subordinately or adds to the beauty, convenience, or effectiveness of something else. Citing previous cases, the court emphasized that subsequent legislation can clarify ambiguous provisions but cannot alter the original intent. As there was no ambiguity in the entries, the court upheld the tax rate of 15% for the relevant period and 6% thereafter, as per subsequent notifications. In conclusion, the court dismissed the tax revision case, affirming the authorities' decision to tax "seat covers for motor vehicles" at 15% for the period in question.
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