Air Curtains Not Electrical Fans: Madras HC upholds 12% Sales Tax Levy, dismisses Petition of Almonard Limited

The Madras High Court has upheld a 12% sales tax levy on air curtains, dismissing a petition from Almonard Limited. The company argued that air curtains, functioning similarly to fans, should be taxed at the lower 8% rate applicable to electrical fans. The court, however, agreed with the tax authorities' classification, stating that air curtains are fundamentally different from fans. The court noted that air curtains are specialized environmental separation equipment designed to prevent the entry of dust and pollutants, a function that distinguishes them from ordinary fans. The ruling confirms that air curtains fall under the broader category of "electrical appliances," attracting a higher tax rate.