Patna High Court Rules Against Bihar Tax Department, Vindicates Savex on Printer Cartridge Tax
The Patna High Court has overturned a Bihar Tax Tribunal order that slapped a higher residuary VAT rate on printer toners and cartridges sold by Savex Technologies. The Court ruled these items are computer peripherals, not generic goods, and should be taxed at concessional rates.
This decision follows a similar ruling in the Hewlett Packard case, exposing a pattern of Bihar tax authorities misclassifying tech products to extract more revenue. The Court criticized the Tribunal for ignoring clear precedents and quashed its order entirely. The judgment sends a strong message: state tax departments can’t arbitrarily hike taxes on IT accessories by resorting to vague “residuary” categories. Savex’s victory is likely to encourage other businesses to challenge such unfair tax demands.