2023 (2) TMI 1231 - HC - VAT and Sales Tax

Classification of goods - rate of tax - mobile phone chargers sold along with mobile phone in a composite pack - whether attracts tax at the same rate as applicable to mobile phone only and it cannot be taxed at higher rate separately? - HELD THAT - This Court has considered the above question in STRP No.8/2022 connected matters 2023 (2) TMI 1228 - KARNATAKA HIGH COURT and answered the question in favour of the assessee and against the Revenue holding that definition contained in the Notification issued under the KVAT Act includes the Charger which is sold along with the mobile phone in one set and accordingly taxable at 5%. Revision dismissed.

Summary

The Karnataka High Court ruled that "mobile phone chargers" sold with mobile phones in a composite pack are taxable at 5% under the Karnataka Value Added Tax Act. The revision petition was dismissed, and the decision favored the assessee over the Revenue.