1968 (9) TMI 101 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of tax rates under the Mysore Sales Tax Act, 1957 for specific goods - Determining whether dry battery cells are classified as "accumulators" under item 53 or under the residuary item 61 of the Second Schedule.

Analysis:
The petitioner, engaged in selling dry battery cells named "Eveready Energisers," disputed the classification of these cells for sales tax purposes. The Commercial Tax Officer assessed tax under the fifty-third item of the Second Schedule, which applied a higher rate. However, the petitioner argued that the cells should be classified under the sixty-first item, attracting a lower tax rate.

The Court examined the definitions of "accumulators" to determine the correct classification. It was established that an accumulator is a cell or battery that can be recharged after energy depletion. The key attribute is the ability to store electrical energy repeatedly. Since the dry battery cells sold by the petitioner could not be recharged once discharged, they did not meet the criteria of an accumulator as per the technical and popular understanding of the term.

Consequently, the Court held that the dry battery cells did not fall under the fifty-third item but should be classified under the residuary sixty-first item. Therefore, the Commercial Tax Officer was directed to modify the assessment orders to apply the tax rate specified for item 61. The petitioner was granted costs, including advocate's fees.

In conclusion, the Court allowed the revision petitions, emphasizing the correct classification of the dry battery cells for tax assessment purposes. The judgment clarified the distinction between "accumulators" and other electrical goods, ensuring the appropriate application of tax rates under the Mysore Sales Tax Act, 1957.