1974 (10) TMI 90 - HC - VAT and Sales Tax

Summary

The High Court of Allahabad held that handloom and its parts are considered machinery and machinery parts, not unclassified items, for taxation purposes. The court determined that handloom qualifies as machinery based on its function of converting yarn into cloth. The court referred to the common meaning of machinery and previous case law to support its decision. The court rejected the argument that handlooms should be assessed as timber products. The court ruled in favor of taxing handloom as machinery and awarded costs to the Commissioner of Sales Tax.