1995 (9) TMI 345 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the turnover of sales of voltage stabilizers is taxable under entry 41-A or entries 4 and 5 of the Tamil Nadu General Sales Tax Act, 1959 for the assessment year 1981-82.

Comprehensive Analysis:
The judgment pertains to a tax case revision under section 38 of the Tamil Nadu General Sales Tax Act, 1959, concerning the taxability of the turnover related to sales of voltage stabilizers during the assessment year 1981-82. The main issue is whether the turnover of Rs. 1,51,067 for voltage stabilizers should be taxed under entry 41-A, as argued by the assessee, or under entry 4 or 5, as contended by the Revenue. The Tribunal sided with the Revenue, prompting the revision by the assessee.

The relevant entries in question are entry 41-A, entry 4, and entry 5 of the Act for the relevant assessment year. Entry 41-A includes electrical instruments and accessories, while entry 4 encompasses refrigerators, air-conditioning appliances, and their parts. Entry 5 covers wireless reception instruments, television sets, and related accessories. The Supreme Court's interpretation of the term "accessory" in previous cases is crucial in determining the applicability of these entries to voltage stabilizers.

The argument presented by the assessee revolves around the specific mention of voltage stabilizers in entry 41-A, contrasting with the general term "accessories thereof" used in entries 4 and 5. The contention is that since voltage stabilizers are not explicitly specified in entries 4 and 5, entry 41-A should exclusively apply to determine the tax liability.

The judgment delves into the meaning of the term "specified" as used in entry 41-A, citing definitions from authoritative sources like the Oxford Universal Dictionary and "Words and Phrases." Additionally, a precedent from the Kerala High Court regarding the interpretation of similar provisions is discussed to support the assessee's argument. The court emphasizes that the term "specified" implies a specific mention or explicit naming, which is lacking in entries 4 and 5 concerning voltage stabilizers.

Drawing from legal interpretations and precedents, the court concludes that the voltage stabilizers have not been specifically mentioned or detailed in entries 4 and 5, which use the term "accessories thereof" in a general sense. Therefore, entry 41-A exclusively applies to determine the tax liability for the turnover of voltage stabilizers. Consequently, the Tribunal's decision is overturned, and the tax case revision is allowed in favor of the assessee, with no costs imposed.