2025-VIL-1329-P&H
  1. Home
  2. 2025-VIL-1329-P&H

VAT High Court Cases

Punjab/Haryana VAT Act - Taxability of sunglasses under VAT laws – Challenge to the orders passed by the authorities and Tribunals in Punjab and Haryana classifying the product ‘sunglasses’ as unclassified items under the residual entry - Whether sunglasses could be considered as "spectacles" for the purpose of taxation under the VAT laws, and hence be taxed at the lower rate applicable to spectacles, or whether they should be taxed at the higher residuary rate – HELD - The term 'spectacles' is an exhaustive and restrictive entry, and does not include sunglasses within its ambit. The Court relied on the common parlance test and in common understanding, spectacles and sunglasses are distinct products used for different purposes- spectacles for vision correction and sunglasses for protection from sun glare - The Court rejected the argument that with technological advancements, the distinction between the two has diminished, stating that even if a product like photochromic lenses blurs the line, it would still be covered under spectacles as it is primarily for vision correction – Further, the subsequent amendment to include sunglasses in the entry for spectacles in the Punjab VAT Act in fact indicated that sunglasses were not originally covered under the term 'spectacles' - The authorities are justified in not giving a broad interpretation to include sunglasses under the entry for 'spectacles' for the purpose of taxation - The orders of the authorities and Tribunals, which had classified sunglasses under the residuary entry for taxation at the higher rate, and not under the entry for spectacles are upheld and the appeals are dismissed - Interpretation of taxation entries - When the language used in the statute is clear, the intention must be gathered from the language used, and a construction requiring addition or substitution of words must be avoided. The principles of statutory interpretation laid down by the Supreme Court is, when the general words follow specific words, the general words must be construed as referring to things of the same kind as the specific words, unless there is a clear manifestation of a contrary intention. Since the entry specifically mentioned 'spectacles', it cannot be expanded to include sunglasses, which are a distinct product – The authorities are justified in not giving a broad interpretation to include sunglasses under the entry for 'spectacles' for the purpose of taxation.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?