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TMI Blog1978 (1) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed to include this turnover in the taxable turnover. The assessees objected to the same on the ground that they were not dealers in cone winding machines fitted with electrical motors and that, therefore, the said sale proceeds were not liable to be included in the taxable turnover. They also contended that even if they were to be included in the taxable turnover, they are not "electrical goods" falling under item 41 of the First Schedule to the Act and that, therefore, they are liable to be taxed at multi-point at 3 per cent as any other goods. The assessing officer rejected both these contentions and held that the sale proceeds of cone winding machines fitted with electrical motors would fall under item 41 of the First Schedule and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover. It is as against this order of the Board that this appeal has been filed. The first contention of the learned counsel for the assessees was that the assessees are carrying on business in cotton textiles and that the sale of cone winding machines could not be treated to be their business or incidental or ancillary to their main business and, hence, it was not liable to be taxed. This contention is not tenable and it is directly against the decision of the Supreme Court in State of Tamil Nadu v. Burmah Shell Co. Ltd.[1973] 31 S.T.C. 426 (S.C.). and the two decisions of this Court that followed the Supreme Court decision, namely, State of Tamil Nadu v. Thermo Electrics[1977] 39 S.T.C. 317. and Deputy Commissioner (C.T.) v. Vijayala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery, instruAt the point 9 per cent." ments, apparatus, appliances, accesof first sale sories and component parts (either in the State. sold as a whole or in parts), including fans, lighting bulbs, electrical earthenwares, porcelain and all other instruments, apparatus, appliances, accessories and component parts, the use of which cannot be had except with the application of electrical energy. This entry was substituted for the original entry by Madras Act 15 of 1964, which came into force on 1st September, 1964. Under the entry, as it originally stood, the word "machinery" did not find a place. Though the entry itself is rearranged, it did not make any difference on the scope of the entry itself. The contention of the learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J., held that the word "machinery" after the amendment of entry 41 would take its sense and scope from the term "electrical goods" that precedes it and several items like fans and other goods, the use of which cannot be had without the use of electricity which follow it and, therefore, the same requirement of machinery being electrical goods as laid down in William Jacks and Co. Ltd. v. State of Madras[1960] 11 S.T.C. 340. will continue to apply even after the amendment. It may be mentioned that in William Jacks' case(2), a Division Bench of this Court held that lathe even though driven by electrical energy will not come within the scope of the expression "electrical goods". The more apposite decision, which has laid down the test whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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