9911796707
TMI Blog1984 (7) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., Jaipur (hereinafter referred to as "the assessee"), supplied copper wire to the Pay and Accounts Officer, D.G.S.D., New Delhi. The invoice described the goods sold as under: "Wire copper hard drawn for telegraphs and telephones conforming to B. ss 174/1951, size 150 lbs. per mile." The assessing authority held that the primary use of the copper wire of the specification sold by the assessee was for the transmission of sound. The assessee could not show that it could be used for the distribution of electric power. The assessing authority further held that it was common knowledge that the copper wire used for telephone and telegraph lines could not be used for distribution of high voltage electricity. The specifications too were dif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, transmission and distribution of electric power/energy in terms of items 29 and 27 of Government notification dated November 2, 1965, and May 29, 1967, respectively read with section 5 of the Rajasthan Sales Tax Act. On the other hand it was contended on behalf of the departmental representative that the assessing authority had concluded that the wire in question was intended for the transmission of sound. According to Notification No. F. 5(40) FD/RNT/63-13 dated March 2, 1963, sound transmitting equipment including telephones, loud-speakers and spare parts thereof were taxable at 10 per cent. As regards earlier ruling of the Board of Revenue it was contended that in the aforesaid case the copper wire was meant for the distribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale in question would attract tax at 10 per cent. Item 49 of the Government notification dated March 2, 1963, is reproduced as under: "Item 49. Sound transmitting equipment including telephones 10 per cent." and loud-speaker and spare parts thereof. According to the Government notification dated July 15, 1963, the rate of sales tax payable on all plants, equipments and their accessories (including service meters) required for generation or distribution of electric power was with immediate effect to be taxed at 3 per cent on the taxable turnover. It was contended by Mr. Mehta, learned counsel for the assessee that the primary use of the wire in question was for generation or distribution of electric power and the rate of tax should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of item, which forms subject-matter of tax has to be determined by its ordinary or commonly known purpose or use. We have already observed that it is evident from the proved facts that the items which have been mentioned in the application filed under section 12A of the Act are the equipments and they are accessories required for generation, transmission or distribution of electric power and as such taxable at concessional rate of 5 per cent under item 29 of the notification dated 2nd November, 1965." It is thus contended by Mr. Mehta that the kind of item, which forms subject-matter of tax has to be determined by its ordinary or commonly known purpose or use. Simply because by any stretch of argument if such goods are capable of use to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not show that the wires in question could be used for the distribution of electric power. It was further held that the primary use of copper wire of the specification sold by the assessee was for the transmission of sound. It was further found that it was common knowledge that copper wire used for telephone and telegraph lines could not be used for distribution of high voltage electricity. According to Mr. Sharma the above finding of fact was not set aside by the Deputy Commissioner or the Board of Revenue and on the basis of the above facts found proved by the Board of Revenue, there was no scope for any argument on behalf of the assessee that the copper wires in question could at all be used for generation, distribution or transmiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehta, learned counsel for the assessee, to show us whether wire copper hard conforming to the specification B. ss 174/1951, size 150 lbs. per mile could at all be used for the transmission of electricity or that the assessee had ever sold copper wires of such specification for transmission of electricity, but Mr. Mehta was unable to place any material on record in support of his contention. In view of these circumstances it is held that on the facts and circumstances of the case copper wire sold by the assessee is covered by entry No. 49 of Notification No. F. 5(40) FD/RNT/63-13 dated March 2, 1963, and is not covered by Notification No. F.5(110)/FD/RT/63 dated July 15, 1963. The reference is answered in the manner indicated above. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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