The Karnataka High Court recently held that the charger which is sold along with the mobile phone in one set is a composite part of the package, and tax cannot be levied differently on each of the components of the package.
The substantial question of law which was before the bench to answer was:
“Whether on the facts and in the circumstances of the petitioner’s case, the Appellate Tribunal was right in law in holding that “mobile phone chargers” sold along with mobile phone in a composite pack attracts tax at the same rate as applicable to “mobile phone” only and it cannot be taxed at a higher rate as unscheduled goods under Section 4(1) (b) (iii) of the Karnataka Value Added Tax Act, 2003 (KVAT Act)?”
Source: lawbeat.in
