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TMI Blog1981 (1) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... stion whether the rectifiers manufactured and sold by them fell under entry 20 in Schedule C or under entry 22 in Schedule E. It was also urged by the assessees that the rectifiers might also fall under entry 15 in Schedule C. The Tribunal, however, rejected the application of the assessees and declined to make a reference to the High Court. Thereafter, the assessees came to the High Court and pursuant to the directions of the High Court, the present reference in Sales Tax Reference No. 31 of 1976 has been made under section 61, sub-section (2), of the Bombay Sales Tax Act, 1959. The references in the other sales tax references have been made under section 61, sub-section (1), of the Bombay Sales Tax Act, 1959. 3.. The question which has been referred to us for determination in all these references is as follows: "Whether the Tribunal was right in holding that the rectifiers manufactured and marketed by the petitioners were not covered by entry No. 15 of Schedule C nor by entry No. 22 of Schedule E but are covered by entry No. 20 of Schedule C of the said Act?" Since this question is common in all the sales tax references referred to above, they have been placed together fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectifier at one end. The current is processed by means of built-in-action in the rectifier based on electronic principle and the ultimate current that leaves the rectifier at the other end is the direct current which is fed to the equipment where it is necessary for the working of that equipment. It may also be pointed out that the rectifiers manufactured by the applicants are in accordance with the specific orders from the customers. They are not of any standard specifications and, therefore, they are not dealt with or sold through bazaar dealers dealing in electrical goods. 7.. It has been urged by Mr. Vaidya, who appears for the applicants, that the rectifiers manufactured by the applicants cannot be classified as electrical goods. He has propounded three tests for determining whether any goods can be considered as electrical goods. The first test propounded by him is that the goods in question should work on electricity. According to Mr. Vaidya, if the goods in question work on electricity and consume electricity, they may be considered in a given case as electrical goods. On this basis he has submitted that the rectifiers which are manufactured by the applicants do not cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riter would ordinarily be classified as office equipment rather than as electrical goods, because the main purpose for which it is used, namely, typing, has no nexus with either production, distribution, transmission or utilisation of electricity. Whenever the purpose for which the goods have been designed has a basic nexus with electricity-either its production, distribution, transmission or utilisation-the goods may be classified as electrical goods. Consumption of electricity is not a decisive guideline for the classification of any goods as electrical goods. In fact, there are goods which are known generally as electrical goods which do not consume electricity. For example, electrical wires do not utilise or consume any electricity at all. They must, however, be classified as electrical goods because electrical wires have a direct nexus with the transmission of electricity. The same is true of plugs and electric switches which are generally considered as electrical goods. Similarly, battery cells, which are also commonly considered as electrical goods, do not consume electricity. They produce electricity. Hence a more accurate criterion for determining whether any goods can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether an electric lathe could be considered as electrical goods. While negativing the contention of the department, the Madras High Court pointed out that, although a lathe of the type in question before them could not be used at all without the use of electrical energy, none the less it remained a lathe which was provided with electric motors for its use. Electric motors were there only to provide the motive power for working the lathe. The Madras High Court, therefore, held that such a lathe could not be considered as electrical goods. Similarly, in the case of Commissioner of Sales Tax v. Import Association, Allahabad[1975] 35 S.T.C. 491., the Allahabad High Court was required to consider whether ammeters and voltmeters which are apparatus for measuring the quantum of electric current, could be considered as electrical goods of the type referred to in the U.P. Sales Tax Act. The Allahabad High Court held that ammeters and votImeters could perform their function only by an electrical energy which was made to pass through them and hence came to the conclusion that they were electrical goods. The rectifiers in the present case can also function only when electrical energy passes t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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