Monitors are integral to a computer system and should be classified as part of 'computer system and peripherals' under the U.P. VAT Act.

JUDGMENT

Alok Mathur, J.

Heard Sri. Sanjay Sarin, learned counsel for revisionist and Sri. Adarsh Srivastava holding brief of Sri. Vikas Singh for the respondents.

2. By means of the present revision, order dated 02.07.2009 has been assailed by the revisionist whereby "monitors" has been held to be part of "computer system and peripheral parts" as per serial No. 22 of Schedule-II B of U.P. VAT Act.

3. It has been submitted by learned counsel for the revisionist that the respondent is a dealer and is registered under the VAT act dealing with purchase and sale of computer equipment and parts.

4. In the present case, the proceedings were initiated and a question was referred to the Commissioner under Section 59 of the U.P. Value Added Tax Act 2008 as to whether the monitor falls within the purview of "computer system and peripherals, electronic diaries" as per serial No. 22 of Schedule-II B of U.P. VAT Act.

5. The Commissioner while rendering his opinion held that the monitors are in fact an output device to the computer on which the data is displayed and such a device can be appropriately covered under serial No. 21 of Schedule-II B of U.P. VAT Act which provides for liquid crystal devices, flat panes display devises and and parts thereof.

6. The respondent being aggrieved by the said order dated 20.03.2009 passed by the Commissioner, Commercial Tax, Uttar Pradesh preferred an appeal before the Tribunal.

7. The Tribunal by means of impugned order dated 02.07.2009 has allowed the said appeal holding that monitors would fall into the category of "computer system, peripherals and electronic diaries".

8. Learned Counsel appearing on behalf of revisionist has submitted that computer monitor would be appropriately covered in serial No. 21 of Schedule-II B of U.P. VAT Act and is merely a display and is not part of the computer system and peripherals.

9. Learned counsel for respondents on the other hand while supporting the impugned order has submitted that this aspect of the matter stands concluded by the number of judgments of this court where it has been held that essential parts of the computer would be part of the computer system and cannot be taken as peripherals.

10. It has been submitted that a monitor is an essential part of a computer system inasmuch as without a display, the entire computer system would be rendered useless.

11. To answer the question as to whether a computer system would include a monitor, it has to be seen as to whether the monitor is an essential ingredient of a computer or merely a peripheral without which it can function.

12. A Computer, in its common parlance and technical sense, is known as a Central Processing Unit, along with its connected peripherals unit, which gives it essential character. A Computer consist of a CPU, monitor, keyboard and mouse or any combination of input and output devices.

13. Without doubt, it is noticed that without a monitor, a computer system would be rendered useless and hence a monitor would be an essential ingredients of a computer system and accordingly it has to be held to be a part of the computer system and peripherals and included in serial No. 22 of Schedule-II B of U.P. VAT Act.

14. In the case of Ricoh India Limited v. Commissioner , 2012 SCC Online Del 2579 , the Delhi High Court has observed as under:

"computer systems and peripherals, Electronic diaries"

16. The question, therefore, which is raised and has to be answered, is whether the multi functional machines or printers are computer peripherals or not? The term "peripheral" has not been defined in the VAT Act and, therefore, has to be given its natural and common sense meaning. A computer mainly consists of Central Processing Unit, which cannot operate and function without peripherals like