1. Handicrafts – Meaning

The goods sold under brand name of ‘badli’ fall in the category of “Handicrafts” within the meaning of the expression used in Entry No. 128 of the Third Schedule of the Delhi VAT Act and therefore chargeable at 4%. High price cannot, rather ought not, become a negative factor. Mere consideration that decorative would find a pride of place in plush homes of rich or affluent, adding to their luxurious style of living, cannot take away the properties on account of which it qualifies to be treated as “Handicraft”.

(M/s. Ame De Verre (P) Ltd. v. CTT (Del), (2016) 28 STJ 196 (Del.), ST Appeal No. 21 of 2013, dated 24th April, 2015).

2. Transfer of Right to Use Hoardings – Not Immovable Property – Taxable under VAT Laws

Under a contract of work order hoarding is transferred to a lessee for a specified period enabling the lessee to display the advertisement works on it according to wishes and imagination of the lessee is liable to pay vat as transfer of right to use the goods. The hoarding is not an immovable property and its transfer of right to use taxable under section 6(1)(c) of The Kerala Value Added Tax Act, 2003.

(M/s. Delta Communications v. State of Kerala, (2016) 53 PHT 174 (Ker.), O. T. Rev. No. 103 of 2012, dated 31st July, 2015).

3. Adjustment of Credit of ITC towards 25% Pre-deposit for Admission of Appeal – Permissible

The ITC amounting to Rs. 2,70,34,216/- was available to dealer for the year 2008-09 which could be adjusted towards amount of 25% of additional demand for admission of appeal.

(D. M. Pungrain v. State of Punjab, (Punjab VAT Tribunal), Appeal No. 123 of 2015, dated 18th September, 2015).

4. Exemption – Non-Woven felts – Supplied to car manufacturer – Is textile fabrics – Exempt

Article non-woven felts mainly used in cars as a matting and supplied to car manufacturers falls within the definition of fabric and is thus exempt from payment of tax.

(CTO v. United Felts and Carpets, (2016) 28 STJ 294 (Raj.), Sales Tax Revision Petition No. 842 of 1999, dated 27th February, 2015).

5. Provision for Payment of Minimum Amount of Pre-Deposit for Entertaining Appeal – Directory

Under section 62(5) of the Punjab VAT Act, no appeal shall be entertained, unless such appeal is accompanied by satisfactory proof of prior minimum payment of 25% of total amount of tax, interest and penalty, if any. This provision is directory in nature meaning thereby that the First Appellate Authority is empowered to partially or completely waive the condition of pre-deposit contained therein in given facts and circumstance.

(Punjab State Power Corporation Ltd. v. State of Punjab, (2016) 53 PHT 258 (P & H), CWP No. 26920 of 2013, dated 31st December, 2015).

6. Nebula Watch made from Gold and Diamonds – Article of Gold / Jewellery the NEBULA Jewellery watch made from Gold Studded with precious stones etc. is an article of Gold / Jewellery covered by Entry 13(ii) of The Gujarat Vat Act.

(M/s. Titan Industries Ltd. v. State of Gujarat, (2016) 54 STJ 1495 (Gujarat Tribunal), Appeal No 23 of 2011, dated 24th February, 2016).