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2005 (2) TMI 518 - SC - VAT and Sales TaxWhether cash registers are classifiable under entry 90 or under entry 97(b) of Part II, Schedule C of the Bombay Sales Tax Act, 1959? Held that - Appeal allowed. The High Court was wrong. It is significant that by contrast, data processing machines have expressly excluded computers. Were it not so excluded, computers would have also fallen within entry 90. In fact computers are separately dealt with in entry 97(a). But the exclusion of computers from data processing machines would indicate that the items mentioned in entry 90 are generic covering all species of such items. Given the language of the two entries we fail to understand how the High Court could have come to the conclusion that entry 97(b) was the specific entry and that entry 90 was the general entry. Such an interpretation goes against the express language of the two entries. Tribunal was right in holding that electronic cash register sold by the applicant was covered by entry No. 90 of Schedule C, Part II and not by entry No. 97(b) of Schedule C, Part II appended to the Bombay Sales Tax Act, 1959.
Issues:
Classification of electronic cash registers under entry 90 or entry 97(b) of the Bombay Sales Tax Act, 1959. Detailed Analysis: 1. Issue of Classification: The core issue in this case revolves around the classification of electronic cash registers under the relevant entries of the Bombay Sales Tax Act, 1959. The competing entries in question are Entry 90 and Entry 97(b) of Part II, Schedule C of the Act. The departmental authorities argued for classification under Entry 90, which specifically mentions cash registering machines, while the respondent-assessee contended that the registers should be classified under Entry 97(b), which covers electronic systems, instruments, apparatus, and appliances not specified elsewhere. 2. Tribunal's Decision and High Court's Ruling: Initially, the Maharashtra Sales Tax Tribunal sided with the department, reasoning that the primary function of the electronic cash registers aligns with the functions of a cash registering machine, thereby falling under Entry 90. However, the High Court disagreed with this assessment. It considered Entry 90 as the general entry and Entry 97(b) as the special entry, emphasizing that since the machines operated electronically, they should be classified under the latter entry. The High Court also drew support from a previous decision of the Andhra Pradesh High Court. 3. Supreme Court's Analysis and Conclusion: The Supreme Court, in its judgment, overturned the High Court's decision. It highlighted the principle that a specific entry prevails over a general entry, citing the Collector of Central Excise v. Wood Craft Products Ltd. case. The Court emphasized that Entry 97(b) is not only a residuary entry but also allows for classification under other entries, unlike Entry 90, which lacks such limitations. The Court found the High Court's interpretation flawed and noted that the language of the entries clearly supports the classification of electronic cash registers under Entry 90. 4. Precedents and Additional Factors: The Court dismissed the relevance of the Andhra Pradesh High Court decision cited by the High Court, as the circumstances and entries involved were distinct. It also addressed the respondent's reliance on a previous Tribunal decision regarding electronic weighing scales, emphasizing that it did not apply to the present case. Furthermore, the Court differentiated the BPL Ltd. v. State of Andhra Pradesh case, highlighting the differing contexts and provisions of the Andhra Pradesh General Sales Tax Act, 1957. 5. Final Verdict: Ultimately, the Supreme Court set aside the High Court's decision, allowing the appeal and confirming the Tribunal's classification of electronic cash registers under Entry 90 of the Bombay Sales Tax Act, 1959. The Court made no order as to costs, concluding the judgment in favor of the department. In conclusion, the Supreme Court's detailed analysis and interpretation of the relevant entries under the Bombay Sales Tax Act, 1959, provide clarity on the classification of electronic cash registers, emphasizing the importance of specific entries over general ones in such tax classification disputes.
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