2002 (11) TMI 757 - HC - VAT and Sales Tax

Summary

Issues:
Rate of tax on computer ribbons under the Kerala General Sales Tax Act, 1963.

Analysis:
The State filed a revision against the Sales Tax Appellate Tribunal's order regarding the rate of tax on computer ribbons for the assessment year 1991-92. The assessing authority proposed to levy tax at 15%, but later assessed it at 8% akin to typewriter ribbon. The first appellate authority considered computer ribbons as accessories to electronic items taxable at 8%. The Tribunal, citing a Board of Revenue clarification, held the tax rate at 5%. The High Court noted that the circular applied only from April 1, 1992, and not for earlier years. The Tribunal erred in relying on the circular, and the High Court restored the first appellate authority's order for fresh consideration by the assessing authority, emphasizing an independent decision. Reference to item 68 of the First Schedule and a relevant Andhra Pradesh High Court decision were suggested for consideration. The case was disposed of accordingly.