1995 (1) TMI 343 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Classification of pumps coupled with electric motors and mono-block pump sets under the Bombay Sales Tax Act, 1959.
2. Applicability of entry C-I-18(i), C-II-102, or C-II-44(b) of the Bombay Sales Tax Act, 1959.

Issue-Wise Detailed Analysis:

1. Classification of Pumps Coupled with Electric Motors and Mono-Block Pump Sets:

The primary issue was whether the pumps coupled with electric motors and mono-block pump sets sold by the assessee to agriculturists for agricultural purposes are covered by entry C-I-18(i), C-II-102, or C-II-44(b) of the Bombay Sales Tax Act, 1959.

The assessee, a registered dealer under the Act, classified these items as "agricultural machinery" under entry 18(i) of Part I of Schedule C, subject to a lower tax rate. The Sales Tax Officer disagreed, classifying them under entry 44(b) of Part II of Schedule C as "electrical appliances," subject to a higher tax rate. The Assistant Commissioner of Sales Tax (Appeals) and the Maharashtra Sales Tax Tribunal upheld this classification. The Tribunal noted that "electrical motors and electrical pump sets" were specifically excluded from entry 18(i) and categorized them as "electric appliances" under entry 44(b).

2. Applicability of Specific Entries:

Entry 18(i) of Part I of Schedule C:
The entry covers agricultural machinery and implements but explicitly excludes "electric motors, pumps, and electric pumping sets." Therefore, the Tribunal and the Court concluded that the items in question do not fall under this entry.

Entry 44(b) of Part II of Schedule C:
This entry pertains to "all electrical instruments, apparatus, and appliances." The Court examined the definitions of "instruments," "apparatus," and "appliances" from various dictionaries and legal texts. It was determined that these terms refer to items used for delicate or scientific work, such as surgical instruments, laboratory apparatus, and kitchen appliances. The Court concluded that these terms do not encompass "machinery" or "plant," which are mechanical contrivances generating power or directing natural forces.

Entry 102 of Part II of Schedule C:
This is a residuary entry covering "all goods other than those specified in the other Schedule and the preceding entries of this Schedule." The Court found that since the items in question do not fall under entry 44(b), they should be classified under entry 102.

Conclusion:
The Court held that the pumps coupled with electric motors and mono-block pump sets sold by the assessee are covered by entry 102 of Part II of Schedule C to the Act and not by entry 18(i) of Part I of Schedule C or entry 44(b) of Part II of Schedule C. This classification results in a lower tax rate for these items.

Final Judgment:
The question referred to the Court was answered in favor of the assessee and against the Revenue. The pumps coupled with electric motors and mono-block pump sets sold by the assessee are classified under entry 102 of Part II of Schedule C, subject to the tax rate specified therein. No order as to costs was made.

Reference Answered Accordingly.