Special drive for disposal of objections relating to mismatch of Annexure 2A/2B cases for the Assessment Year 2012-13.
November, 27th 2014
IN THE OFFICE OF COMMISSIONER
DEPARTMENT OF TRADE AND TAXES
GOVERNMENT OF N.e.T. OF DELHI
VYAPAR BHAWAN, NEW DELHI
No.367 jCDVAT/2014j 2-'1 9
Mj s. .Jagdeep & Associates (Legal Firm),
A-36, Rajouri Garden,
New Delhi - 110036.
Present for the Applicant Sh. A.K.Batra, CA '
Present for the Department- Sh. M.K.Aggarwal, Departmental
Represen ta tive
The above named applicant filed an application on 10/06 j 2014 under
section 84 of Delhi Value Added Tax,Act,2004 (hereinafter referred to as the
"said Act") and the ,question nut up for determination under the aforesaid
provision of law is as under: -
~;Whether sale of ,lvIicrophones shall be subject to levy of VAT at 5%
under ScheduleIll of the DVATAct or at 12.5% under the Residual
2. The application has been filed by Mj s. Jagdeep & Associates (Legal
Firm) L'"1 the prescribed format DVAT-42 and the requisite fee of
Rs.300f-paid vide DD No, 920883 dated 04.06.2014 drawn on Kotak I
Mahiridra Bank, Vishal Enclave, Delhi. 1.
3. Sh. A.K. Batra, C.A appeared on behalf of Ml s. .Jagdeep & Associates
(Legal Firm) and reiterated the facts and grounds of the case and
requested to determinethe rare of tax payable on sale of Microphones.
4. The brief facts of the case, as explained by the applicant are as under:-
i) One of the clients of the applicant proposes to start the business
of trading of Microphones which can be used in· computers,
computer peripherals, for speech and sound amplifiers and other
allied products. The usage of these Microphones by the end.
consumer, at the time of its sale, will not be known.
ii) Earlier a similar question was raised by ~'f/ s Audio Centre for
determination. It was PUt up before the court "Is rate of VAT
applicable on the sale of Microphones 1S 4%". Vide
Determination No.127 /CDVAT/2006 dated 08.08.2006 passed
in the name of Audio Centre it has been determined that such
Microphones which are used for Public Address System will not
get covered under Schedule III of the DVATAct but under the
residuary entryandwill be charged @ 12.5%.
iii) Itwas held that the Public Address Microphones are general
unspecified goods and would attract tax at the rate of 12.5% in
viewofthe Section 4(1)(e)olT.l.'-le
iv) Applicant further stated ,-n<::t similar issues have been examined
by various courts wherein They held that a residuary entry is
meant only for those categories of goods which fall outside the
ambit of specified entries, meaning thereby that when a particular
item has been specified 1;. The Schedule it will attract the rate of
tax. specified ill that schedule and in the instant case
10) of Third Schedule
Microphones are mentioned in entry 41 (A)(
of the DVATAct, 2004.
v) Applicant further stated that 'Microphone' is a genus and the 'one
used in products such as Computers, Mobile Phones etc.', are the
species to it. Genus includes the species of it. Therefore,
Microphone includes all type of microphones. In the instant case,
microphone is used in the computers and IT products and thus,
is very well covered in the genus of the word 'Microphone'.
With the above averments, he stated that Microphones which are
specified under Schedule III of the DVi~,.T Act attract 5% VAT, whether
the same are used in IT Products or for Public Address Systems and
other allied products .:
o. The DR, on the other hand, argued that entry 41A of the Schedule III of
DVATAct,2004, reads as under:
51. No. i CO:i!YIODITY.
41A i· InformationTechnolOay-
products - i
I 10 I Microphones,
multimedia headphones, I
I learphonesand combinehd ~crophonesJ speakersets andi
! ! _ tt err pans. i
The entry- of Microphones is not an independent entry bur the
scope of the entry is restricted to the extent of the Microphones used in
. IT products. The intent of the legislature is to include those
microphones which are minute and CE.:l be attached to the computers.
The microphones which are used in auditorium, public gatherings or
. theatres for addressing public meeting, concerts etc. are not covered in
the entry. The genus in the instant case is IT products and its species is
Microphone. The sccpe of the entry do not cover Microphone in a
general sense but it should be read in The limited sense in which it is
mentioned. Further, the issue has already been decided by the
Commissioner, VATin the order dated 08.08.2006.
6. I have heard both the sides and gone through the documents available
on record and I am of the opinion that the intent of the legislature is to
include only those Microphones which are used as IT products and not
to include those microphones which are used in auditorium, public
gatherings or theatres for addressing public meeting, concerts etc. and
those are covered under section 4(1)(e) of the Delhi Value Added Tax
Act, 2004 and attract tax @ 12.5%
7. Held accordingly.
Commissioner , VAT
Copy for information and necessary action to:
2 .· Addl. Commissioner (Law & Judicial)
3. Addl. Commissioner (System)
4. Programmer (EDP) for uploading this order on web.
o. Value Added Tax Officer (Policy Branch)
6. President, Sales Tax Bar Association (Regd.)
7. Guard File