1
IN THE COURT OF COMMISSIONER
DEPARTMENT OF TRADE & TAXES
GOVERNMENT OF NCT OF DELHI
VYAPAR BHAWAN, NEW DELHI
M/s.NEC India Pvt. Ltd., No: 204/CDVAT/2008/
Block C-1, First Floor, Dated:
‘THE MIRA – CORPORATE SUITERS’,
1 & 2, Ishwar Nagar, Okhla Crossing,
New Delhi – 110 065.
ORDER
Present for the Applicant : Shri H.C.Bhatia, Advocate
Present for the Department : Shri Nitya Nand, DR.
The above named applicant has filed this application u/s 84 of the Delhi Value Added Tax Act, 2004 (herein after referred to as the “said Act”) and the questions put up before this Court for determination under the aforesaid provision of law is as under:
“Whether LCD Monitors, LCD Displays/Plasma Displays are exempt from tax as being meant for educational purposes like books, periodicals and journals including maps, charts and globes which are covered by Entry No.5 of the First Schedule to the Delhi Value Added Tax Act, 2004 and are exempt from tax or the same are covered by Entry No.41 of the Third Schedule to Delhi Value Added Tax Act, 2004 and are taxable @ 4%.”
2. The application for determination has been made in the prescribed format DVAT-42 and the requisite fee of Rs.500/- paid through Demand Draft No:014082 dated 29-01-08.
3. The Petitioner is engaged in the business of import and sale of LCD Monitors and LCD/Plasma Displays. The case of the Applicant is that LCD Monitors, LCD Displays/Plasma Displays are an integral part of computer and cannot work unless the same are attached to computer. It is stated that LCD Monitors and LCD/Plasma Displays are covered by Entry No.41 of the Third Schedule to the DVAT Act, 2004 and are therefore taxable @ 4%.
4. Entry No.41 of the Third Schedule to the DVAT Act, 2004 reads as under:
“IT products including computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof, cellular phones and accessories.”
5. A bare reading of the above Entry shows that this Entry covers only parts of computers and nothing beyond it. Therefore, the basic question for the interpretation of Entry No.41 is whether the items mentioned in the application are parts of the computers or not.
6. The Counsel for the Applicant has also placed on record a clarification issued by the Department in the year 2000 regarding electronic components and parts including computer components and parts, which were issued under the provisions of Delhi Sales Tax Act, 1975. It is quite clear from the said clarification that the same pertained to Entry No.37 of Second Schedule of the Delhi Sales Tax Act, 1975, which is not pari materia with the Entry No.41 of Third Schedule to the DVAT Act, 2004.
7. The DR pointed out that Clause 18 of Entry No.41A of Third Schedule of DVAT Act, 2004,”LCD Panels, LED Panels and parts thereof ” have been notified as IT Products. The DR further pointed out that LCD Monitors, LCD Displays/Plasma Displays are distinct from LCD Panels and since these items do not find any reference in any of the Schedules to the DVAT Act, 2004, they are unclassified items and hence taxable at the rate of 12.5%.
8. I have perused the application for determination and heard both the parties. The items under Clause 18 of Entry No. 41A of the Third Schedule to the DVAT Act, 2004, are covered as IT Products and since LCD Monitors, LCD Displays/Plasma Displays do not find any reference in any of Schedules, They are treated as unclassified items and are taxable at the rate of 12.5%. Held accordingly.
(Archna Arora)
Commissioner (T&T)
Copy for information and necessary action to:
1. The Applicant.
2. Addl. Commissioner (L&J) Vyapar Bhawan,New Delhi.
3. Sales Tax Bar Association,Vyapar Bhawan, New Delhi.
4. Value Added Tax Officer,Policy Branch,Vyapar Bhawan, New Delhi. 5. Guard File.
(Archna Arora)
Commissioner (T&T)