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TMI Blog2017 (11) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... . The counter affidavit filed by the second respondent does not render much assistance to the case of the respondent/Department. One more factor, to be taken into consideration is the proceedings of the Authority for Clarification and Advance Ruling under Section 60 of the Karnataka Value Added Tax Act, 2003. Though the clarification given by the said Authority will not bind the respondent, it will be a good indicator, as to how, the products dealt with by the petitioner have been considered under the Karnataka Value Added Tax Act, 2003. The decision, in the case of C.M.C Ltd., [2015 (4) TMI 167 - MADRAS HIGH COURT] would support the petitioner's case, insofar as the the product, routers is concerned, where it was held that the goods sold by the assessee, namely, router, is a computer peripheral, falls under Serial No.22, Entry 68 of Part B of I Schedule of TNVAT Act, 2006. - petition challenging the clarification dated 29.07.2004 is allowed - petition allowed - decided in favor of petitioner. - W.P.No.39115 of 2005, W.P.No.19693 of 2007, W.P.M.P.Nos.41894 of 2005, M.P.No.1 of 2007 - - - Dated:- 6-11-2017 - T. S. Sivagnanam, J. For the Petitioner : Mr. P. Rajkumar F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Unix controllers - Parts Accessories Part-A of I such as a) 1/04 card board 1/108 w.e.f. 5-3-97. + card. 2% under Entry 1-C of schedule to the TNGST Act, 1959 3.b. Network access Peripherals Schedule to server 4% u/e.18 of Part B of I the TNGST Act, 1959 w.e.f. 17-7-96. 4. Inter-Networking products such as - Parts Accessories to cabel, lino-patch cord, fibre patch card, connector 2% u/e-1-C of Part A of I Schedule to the TNGST Act, 1959 w.e.f. 5-3-97. 5. Storage products such - Parts Accessories CB-ROM CTD etc. 2% u/e 1-C of I Schedule to the as Floppy Disc, TNGST Act, 1959 w.e.f. 5-3-97. 6. Wide Area Network - Parts Accessories such as Eicon card C20, bicon card C21, Eicon S51, Eicon S52, Eicon DPNA C cards. 2% u/e 1-C of I Schedule to the (WAN) products TNGST Act, 1959 w.e.f. 5-3-97. Sd/- Yasmin Ahmed, Special Commissioner Commissioner of Commercial Taxes. 5. It may not be necessary for this Court to go into the percentage of tax payable f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er clarification, by letter, dated 03.11.2005. The clarification, dated 29.07.2004 and the letter, dated 03.11.2005, reiterating the clarification are impugned in W.P.No.39115 of 2005. 7. Firstly, it has to be pointed out that the petitioner's assessment is sought to be revised/re-opened based on a clarification issued at the instance of a different dealer. That apart, when the Commissioner clarified the rate of duty on a request made by the WIPRO Ltd., the petitioner did not have any opportunity to putforth their objections. From the clarification, dated 23.12.2002, issued in favour of WIPRO Ltd., it is not clear, as to what was the product, for which, WIPRO sought for clarification and how the product was brought under Entry No.13 (ii) in Part C of the first schedule to the TNGST Act, and how Hubs and Routers were brought under Entry 14 (v) in Part D of the first schedule to the TNGST Act. 8. Therefore, the clarification, dated 23.12.2002, could not have been straightaway imposed on the petitioner, though such clarification may bind the Assessing Officer/respondent. Even assuming that there is a clarification in vogue, at the instance of a third party dealer, if an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -98. ***** With reference to your letter, our opinion regarding the clarification of the products of M/s. APCOM Computers Limited is as below: 1. Hard Disk Drives : Parts Accessories 2. Local area network (LAN) Products such as Ethernet Adapter, Hub, Switch, Routers. : Peripherals 3. Unix controllers such as a) 1/04 card and 1/108 + card c) Network access server : Parts Accessories Peripherals 4. Inter-networking products such as cable, Line-patch cord, fibre patch cord, connector. : Parts Accessories 5. Storage products such as Floppy Disc, CD-ROM, CTD etc. : Parts Accessories 6. Wide area network (WAN) products such as Eicon card C 20, Eicon Card C 21, Eicon S51, Eicon S52, Eicon DPNA Cards. : Parts Accessories Thanking you, Yours faithfully, for ELECTRONICS CORPORATION OF TAMILNADU LIMITED K.S.LAKSMINARAYANAN GENERAL MANAGER (DEVELOPMENT) 10. Insofar as the State of Tamil Nadu is concerned, ELCOT is recognized as a technical body for supply, installation, maintenance etc., of computers and electronic products. Thus, it is an Expert Body, whose certification is of much relevance and importan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to the case of the respondent/Department. One more factor, to be taken into consideration is the proceedings of the Authority for Clarification and Advance Ruling under Section 60 of the Karnataka Value Added Tax Act, 2003. Though the clarification given by the said Authority will not bind the respondent, it will be a good indicator, as to how, the products dealt with by the petitioner have been considered under the Karnataka Value Added Tax Act, 2003. In the said communication, the petitioner had sought for clarification as regards the rate of tax for switches, hubs and routers as computer peripherals and the Advance Ruling Authority, after examining the matter, found that switches and hubs falls under Central Excise Tariff under 8473; routers falls under Central Excise Tariff heading 8517; as also cables, fall under Central Excise Tariff heading 8544; and are enumerated as Serial Nos.25 and 30 of Notification, dated 30.04.2005 and Serial No.117, in notification, dated 30.04.2005 respectively and they are liable to tax at 4%. The Central Excise Tariff heading 8473, deals with computer systems and peripherals. 14. Thus, in respect of the assessee's own case, under Karnat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capabilities of the computer, hence, it does not form part of core computer architecture. Therefore, we find that the Appellate Deputy Commissioner as well as the Tribunal are justified in holding that the goods sold by the assessee, namely, router, is a computer peripheral, falls under Serial No.22, Entry 68 of Part B of I Schedule of TNVAT Act, 2006. 16. The above findings rendered by the Tribunal was confirmed by the Hon'ble Division Bench of this Court. Therefore, the decision, in the case of C.M.C Ltd., (supra) would support the petitioner's case, insofar as the the product, routers is concerned. Further, it is interesting to note that the Dean of the College of Engineering, Guindy Anna University, Chennai, has given a certificate, dated 24.09.2014, to confirm that the products categorized as hubs and switches are used in connecting the computers on a Local Area Network (LAN) and these are computer peripherals. Similarly, routers, that forward data packets from Computers in one Local Area Network (LAN) or in a Wide Area Network (WAN) to another LAN/WAN and used for internet are also computer peripherals. This certificate cannot be disputed by the respondent/D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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