2011 (11) TMI 576 - HC - VAT and Sales Tax

Taxability @ 4% under item No. 41 of the Notification No. F.4(12)/F/Tax-Div./2001-12 dated March 29, 2001 - tax on the sale of such AC generator sets in residuary entry at 10 per cent - Held that - there is no error in the impugned order of the Tax Board dated March 24, 2009, and since the relevant entry No. 41 all kinds of generating sets is wide enough to cover the AC generating sets also during the relevant period, there appears to be no justification on the part of the assessing authority to invoke residuary entry and impose 10 per cent rate of tax - Decided against Revenue.

Summary

The High Court of Rajasthan upheld the Tax Board's decision that AC generator sets are taxable at four percent under a specific notification, not at 10 percent under a residuary entry. The court dismissed the Revenue's revision petition, stating there was no error in the Tax Board's order.