1988 (6) TMI 318 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of tax entry prior to an amendment.
2. Taxability of televisions and parts under specific entry.
3. Common parlance interpretation of "wireless reception instrument."

Analysis:
The judgment by the High Court of Andhra Pradesh dealt with the interpretation of a tax entry prior to an amendment concerning the taxability of televisions and their parts and accessories. The main issue revolved around whether televisions and related items should be taxed under a specific entry or as general goods under the Act. The court discussed the significance of Amendment Act No. 49 of 1976, which inserted the word "televisions" into the entry. The court clarified that for the period before September 1, 1976, there was a dispute regarding the taxability of televisions under the said entry.

The Revenue contended that televisions should be taxed under the entry as they are essentially wireless reception instruments, similar to radios. They argued that the subsequent amendment was made to clarify the inclusion of televisions and eliminate any ambiguity. On the other hand, the dealer-respondent argued that televisions should not be considered wireless reception instruments, as this would render the amendment redundant. The court acknowledged that amendments are often made for clarification purposes but emphasized the need to interpret the entry based on common or commercial parlance.

The court analyzed the definitions of "wireless" and "television" from the Concise Oxford Dictionary to determine whether televisions could be classified as wireless reception instruments. It was observed that the emphasis in the definition of television was on reproducing scenes at a distance through radio transmission, indicating a different functionality compared to traditional wireless reception instruments. The court concluded that in common or commercial parlance, televisions and their parts and accessories were not taxable under the specific entry before September 1, 1976.

Additionally, the court noted that the cases under consideration were unique as televisions were introduced in the state only in 1977, and sales of televisions and related items occurred after September 1, 1976. The cases arose due to the dealer's sales of television parts to a manufacturer, which primarily sold televisions outside the state at that time. Ultimately, the tax revision cases were dismissed, and no costs were awarded to either party, leading to the petitions being dismissed.