2024 (6) TMI 999 - HC - VAT and Sales Tax

Classification - rate of tax - powers sprayer - falls under Schedule-I of the Rajasthan Value Added Tax Act, 2003 and taxable @ of 4% under Schedule-IV of Rajasthan Value Added Tax Act, 2003 or not? - item sprayers including their parts and accessories under S. No. 29 of the ordinary agricultural implements of Schedule-I of the Rajasthan Value Added Tax Act, 2003 would also include the powers sprayers and its parts and accessories or not. Whether in the facts and circumstances of the case, the learned tax board has erred in law in holding that the item powers sprayer does not falls under Schedule-I of the Rajasthan Value Added Tax Act, 2003 and is, therefore, taxable @ of 4% under Schedule-IV of the above Act? - HELD THAT - A bare perusal of the Schedule-I of the Act of 2003 makes it amply clear that there is no specific word like power sprayers in Schedule-I. S. No. 1 of Schedule-IV specifically states that the same is taxable. Apparently, the goods power sprayer do not fall under Schedule-I of the Act of 2003 and, therefore, is taxable under Schedule-IV of the above Act. Whether in the facts and circumstances of the case, the learned tax board has erred in law in not appreciating the fact that item sprayers including their parts and accessories under S. No. 29 of the ordinary agricultural implements of Schedule-I of the Rajasthan Value Added Tax Act, 2003 would also include the powers sprayers and its parts and accessories ? - HELD THAT - Schedule-V provides for the goods taxable which are not covered in any other schedule under the Act or under any notification issued under Section 4 of the Act. Apparently, the goods in question i.e. power sprayers is not specifically included in any Schedule and, therefore, the goods power sprayers is taxable as per Schedule-IV and the parts and accessories thereof are taxable under Schedule-V. The learned Tax Board has not committed any illegality while passing the impugned orders and, therefore, the present revision petitions are dismissed accordingly.

Summary

Issues Involved:
1. Taxability of "power sprayers" under the Rajasthan Value Added Tax Act, 2003.
2. Interpretation of Schedule-I and Schedule-IV of the Act regarding "power sprayers."
3. Applicability of tax rates for parts and accessories of "power sprayers."

Detailed Analysis:

Issue 1: Taxability of "Power Sprayers" under the Rajasthan Value Added Tax Act, 2003
The petitioner argued that "power sprayers" should be considered as exempt under Schedule-I of the Act of 2003, which lists goods exempt from tax. The petitioner contended that "power sprayers" fall under the category of "sprayers including their parts and accessories" as mentioned in S. No. 29 of Schedule-I. However, the assessing authority, appellate authority, and the Tax Board held that "power sprayers" do not fall under any entry in Schedule-I and are thus taxable under Schedule-IV, which lists goods taxable at 4%.

Issue 2: Interpretation of Schedule-I and Schedule-IV of the Act Regarding "Power Sprayers"
The court examined the language of Schedule-I and Schedule-IV. Schedule-I lists "sprayer including their parts and accessories" but does not specifically mention "power sprayers." The court noted that S. No. 1 of Schedule-IV, which lists agricultural implements other than those mentioned in Schedule-I, specifically states that such items are taxable at 5%. Therefore, the court concluded that "power sprayers" do not fall under Schedule-I and are taxable under Schedule-IV.

Issue 3: Applicability of Tax Rates for Parts and Accessories of "Power Sprayers"
The parts and accessories of "power sprayers" were argued to be exempt under Schedule-I. However, the court found that these parts and accessories are taxable under Schedule-V, which lists goods not covered in any other schedule under the Act. The applicable tax rate for these parts and accessories is 14%, as per the revised notification.

Conclusion:
The court upheld the decisions of the assessing authority, appellate authority, and the Tax Board, concluding that "power sprayers" do not fall under Schedule-I and are taxable under Schedule-IV. Additionally, the parts and accessories of "power sprayers" are taxable under Schedule-V. The court dismissed the revision petitions and affirmed the imposition of differential tax and interest on the petitioner. The interpretation of the taxing statute was guided by the principle that the court must look squarely at the words of the statute and interpret them without importing any provisions not explicitly stated.