In a recent judgement, it has been declared by the Chennai High Court that printer has to be treated as a peripheral to a computer system. The court has also ordered declaration that toner cartridges are to be considered as accessories of peripherals attached to computers. Hence, in terms of Entry 22 in Serial No. 68 of Part B of the First Schedule Computer Systems and Peripherals are chargeable to 4% or 5% VAT. Undoubtedly, inkjet cartridges and toner cartridges are parts and accessories of a printer.
In all these writ petitions filed, the petitioners are manufacturers and successive dealers who have effected sales and re-sales of inkjet cartridges and toner cartridges used in inkjet printers and laser printers.
It has been further revealed that the petitioners would oppose that all State Governments have agreed to tax Information Technology Products (IT Products) to VAT at the rate of 4% (presently raised to 5%) and all states are taxing IT products, namely, Inkjet Cartridge as accessory or "part" of printer, which is a "peripheral".
In the result, the writ petitions are allowed holding that inkjet cartridges and toner cartridges are parts and accessories of printer which is a peripheral to a computer system and would be covered under Entry Nos. 22 & 24 of Serial No. 68, Part B of First Schedule to the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act).
