PLEASE PROVIDING FOR ME VAT TAX RATE ON EMBROIDERY MACHINE AND EMBROIDERY SPARE PARTS ALSO PLEASE PROVIDING VAT RATE ON TEXTILES MACHINES LIKE RAPIER, JACKAD AND LOOMS AND RELATED SPARE PARTS
18 November 2013
2. The application for determination has been made in the prescribed format DVAT-42 and the requisite fee of Rs. 500/-, paid through Draft No. 426717 dated 17.3.06. 3. The applicant is engaged in the business of import and sale of embroidery machines, its parts and accessories and it is registered with the Sales Tax Department since 2002. The applicant has been charging tax on the sale of embroidery machines and their parts and accessories @ 12.5% by treating the same as general and unclassified goods but some of the dealers are charging tax @ 4% on the same item. In view of the above confusion about rate of tax the applicant has approached this Court. 4. Sh. Bhatia appeared on behalf of the applicant has reiterated the grounds of the application of determination and argued that as per entry No. 61 of IIIrd Schedule of the said Act, the embroidery machine is nothing but a special type of sewing machine, therefore, the rate of tax on embroidery machine including its parts and accessories should be taxable @ 4% being covered under the said entry. He has further argued that if the said entry is not applicable for embroidery machine and its parts than the entry No. 86(vi) of IIIrd Schedule of the said Act i.e. machinery for textile industries including hosiery other than jute is applicable. As such the embroidery machines and its parts should be taxable @ 4%.
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