1996 (8) TMI 496 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of entries 38 and 83 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.

Analysis:
The judgment pertains to four tax revision cases filed by the State under section 22(1) of the Andhra Pradesh General Sales Tax Act, 1957. The cases involve the classification of electric meters under entry 38 or entry 83 of the First Schedule to the Act. The respondent, a manufacturer and dealer in electrical transformers and meters, contested the assessment by the assessing authority, which treated electric meters as machinery falling under entry 83 and subjected the turnover to sales tax. The Deputy Commissioner revised the assessment, directing taxation under entry 38. The Sales Tax Appellate Tribunal held that electric meters fall under entry 83, prompting the State to file tax revision cases challenging this decision.

The primary issue revolves around the interpretation of entries 38 and 83 of the First Schedule. Entry 38 covers various electrical goods, instruments, and appliances, while entry 83 includes machinery operated by electricity or other fuels. The Court analyzed the wording of entry 38 before and after an amendment, focusing on the phrases "that is to say" and "including." The Court referred to legal precedents to interpret these phrases, determining that the use of "including" post-amendment implies an illustrative rather than exhaustive list, broadening the scope of entry 38 to encompass electric meters.

Regarding entry 83, which includes machinery operated by electricity among other fuels, the Court cited precedents from other High Courts to support the classification of electric meters as machinery. The Court relied on judgments establishing that equipment used to measure electricity for sale constitutes machinery and falls within the ambit of entry 83. Consequently, the Court concluded that electric meters qualify as machinery under entry 83, particularly for the assessment years 1976-77 and 1982-83.

In conclusion, the Court dismissed tax revision cases 127 and 195 of 1990 while allowing cases 185 and 206 of 1990. The decision was based on the classification of electric meters under entry 83 as machinery, in line with legal interpretations and precedents. No costs were awarded considering the circumstances of the case.