1988 (3) TMI 436 - HC - VAT and Sales Tax

Summary

Issues: Classification of wet grinders under item 41-B or item 81 of the Tamil Nadu General Sales Tax Act.

Analysis:
The petitioner argued that wet grinders should be classified under item 81 and taxed at 6%, not under item 41-B at 12% due to the introduction of the latter in 1977. The contention was based on the similarity between "domestic electrical appliances" in item 41-B and the machinery in item 81. The court examined the descriptions of item 81 and item 41-B, emphasizing that item 41-B includes domestic electrical appliances like grinders, mixers, and blenders. The court concluded that wet grinders fall under domestic appliances propelled by electricity, making them eligible for classification under item 41-B. Therefore, the tax collection under item 41-B was deemed lawful and not opposed to the enactment's provisions.

Judgment:
Writ Petitions 5895 and 5897 were dismissed as wet grinders were classified under item 41-B, justifying the 12% tax collection. However, Writ Petitions 5893 and 5894 for the years 1975-76 and 1976-77 were allowed, and the tax collected at 12% under item 41-B was ordered to be refunded. In the case of Writ Petition 5896, the court directed the assessing authority to collect tax under item 81 for the period from April 1, 1977, to September 13, 1977, and under item 41-B for the subsequent year 1977-78. Writ Petition 5896 was remanded for proper assessment and tax collection.