Articles 2nd Jun 2021
The issue of classification of parts and accessories has always been a bone of contention which has plagued a plethora of tax payers as well as the Department at large. Economic Laws Practice’s Jignesh Ghelani (Partner) and Ashwin Ramesh (Principal Associate). In their article with TIOL , the authors analyze the recent Supreme Court judgment in the case of WestingHouse Saxby Farmer Ltd, on the classification of ‘relays’ manufactured by the assessee.
Jignesh shed light on the implication of the judgment and the applicability of ‘General Rules for Interpretation of the First Schedule’ (GIR) in classification of parts. Finally, the authors also discuss the road ahead for the conundrum and how the judgement opens the pandora box of classification disputes, for various sectors.