STATE OF PUNJAB vs NOKIA INDIA PVT LTD.

The Supreme Court upheld the High Court's decision that battery chargers sold with cell phones are part of a composite package and thus eligible for the concessional tax rate applicable to cell phones under the Punjab Value Added Tax Act, 2005. The Court emphasized that the battery charger cannot be treated as a separate taxable item when sold together with the mobile phone. Consequently, the demands raised by the Assessing Authority for higher tax rates were set aside, affirming the lower tax rate of 4%.