In VAT act, there are broadly two kinds of goods - Declared and Undeclared.
Declared have to be taxed according to schedule in VAT act or notifications.
Undeclared have to be taxed at full VAT rate.
Now can any assessing officer say that since a "declared good" can only be used in X application. And since it has been used in Y application he is not aware of, it has to be taxed at full VAT rate ?
Is there any logic to this effect?
If anyone has any court order where such situation has arisen and aggrieved party has won the case, kindly share/upload.
Regards,
AK
CAclubindia
