The Allahabad High Court recently ruled that Samsung (India) Electronics is not liable to pay VAT (value-added tax) separately on the mobile phone pack which also contains its charger. The judgment explained that the primary intent of the contract appeared to be the sale of the mobile phone and the supply of the charger was at best collateral. The predominant intent of the transaction must be recognised.
The charger can possibly be purchases separately also. However, in case it is placed in a single retail package along with the mobile phone, the primary intent is the purchase of the mobile phone. Also, the composite package bears a singular MRP, the court pointed out.