2019 (12) TMI 1690 - HC - VAT / Sales Tax

Seeking withdrawal of petition and pursuing an alternate remedy under Section 54 of the TNVAT Act 2006 - Classification of goods - recorded music CD/DVD under Entry (13-A) (e) in Parts C to I Schedule to TNVAT Act 2006 - taxable @14.5% or at 4% / 5% in terms of Entry No.68 Part B to the I Schedule as Information Technology Products ? - HELD THAT - The present Writ Petitions are disposed with liberty to pursue the aforesaid remedy by invoking the revisional powers under Section 54 of the TNVAT Act 2006.

Summary

The judgment from the Madras High Court, presided over by Hon'ble Mr. Justice C. Saravanan, addresses four writ petitions filed by the petitioner, represented by Mr. C. Bakthi Siromoni, against the tax demands imposed by the second respondent, represented by Mr. S. Kanmani Annamalai, AGP (T). The impugned orders require the petitioner to pay a 14.5% tax on recorded music CDs/DVDs under Entry (13-A) (e) of the TNVAT Act, 2006. The petitioner argues that these items should be taxed at 4% or 5% as "Information Technology Products" under Entry No. 68, Part B of the I Schedule, citing G.O.Ms.3 CT&R (B1) dated 01.01.2007, which includes "recorded and pre-recorded DVDs and CDs."The petitioner contends that the orders are based on a non-binding clarification under Section 48 A of the TNVAT Act, 2006. After discussions, the petitioner opted to withdraw the writ petitions to pursue an alternative remedy under Section 54 of the TNVAT Act, 2006, which allows for revisional powers. The court disposed of the writ petitions, granting the petitioner the liberty to file applications before the jurisdictional Joint Commissioner or an equivalent officer.