1979 (4) TMI 153 - HC - VAT and Sales Tax

Summary

Issues:
1. Classification of record players, record changers, and records under the U.P. Sales Tax Act.
2. Classification of transistor radios under the U.P. Sales Tax Act.

Detailed Analysis:

1. Classification of Record Players, Record Changers, and Records:
The revising authority referred two questions for the court's opinion regarding the classification of record players, record changers, and records under the U.P. Sales Tax Act. The first issue was whether these items fall under the category of items described in the notification dated 1st June, 1963, and are taxable at 10%, or if they are unclassified items taxable under section 3 of the Act. The court analyzed the notification's wording, specifically item No. 7, which includes "Gramophones and component parts thereof and records." The court noted that records, record players, and record changers are essentially similar to gramophones in function, as they reproduce sound using mechanical contrivances. The court emphasized that the term "records" in the notification refers to sound discs that emit recorded sound when played on a suitable device, regardless of the specific playback speed. Therefore, both older model records and newer records played on record players are covered under the notification. The court further determined that record players are essentially gramophones, as they serve the same purpose of playing records using a needle and speakers, with the only difference being the power source for the revolving disc. Consequently, record players were classified as gramophones under the notification. However, the court differentiated record changers from gramophones, stating that record changers are not sound-emitting devices but facilitate record changes in record players. As record changers are not essential parts of gramophones, they were not classified under the notification.

2. Classification of Transistor Radios:
The second issue involved the classification of transistor radios under the U.P. Sales Tax Act. The court examined item No. 15 of the notification, which includes "Wireless reception instruments and apparatus, radios and radiogramophones, electrical valves, accumulators, amplifiers, and loud-speakers." The court addressed the argument that transistor radios did not qualify as wireless reception instruments under the notification, contending that radios mentioned in the notification required electric valves for sound reception. However, the court disagreed, stating that a transistor radio performs the same function as a traditional radio by receiving and amplifying transmitted sound, albeit using transistors instead of electric valves. The court concluded that transistor radios sold by the assessee were indeed liable to be taxed under the notification dated 1st June, 1963.

In conclusion, the court partially allowed the revision, holding that record players, records, and transistor radios sold by the assessee were taxable under the notification, while record changers were not classified under the Act. The judgment was communicated to the revising authority as per the statutory provisions, and there was no order regarding costs due to the partial success and failure of the petition.