9911796707
TMI Blog1990 (11) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover at Rs. 23,50,956.84 and Rs. 3,53,861.60 as against the reported total and taxable turnover of Rs. 24,48,676.84 and Rs. 2,985.02, respectively by the assessing authority for the assessment year 1977-78, the assessee objected to the imposition of any tax on the sale of wet grinders attached with electric motors and also raised some other objections. The issue, however, as to the tax liability upon the sale of grinders under item 41-B of the First Schedule to the Act came up before the Tribunal. The Tribunal agreed with the contention of the assessee that even though the wet grinder was sold with electric motor attached to it by the assessee, since it had already been taxed at the very first sale to him in the State, he was not liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax. Where commercial goods, without change of their identity as such goods, are merely subjected to some processing or finishing or are merely joined together, they may remain commercially the goods which cannot be taxed again, in a series of sales, so long as they retain their identity as goods of a particular type." After considering the case of State of Madhya Bharat v. Hiralal [1966] 17 STC 313 (SC) at 315 and Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430 (SC) at 447, the Supreme Court in the said case has also observed: "It is true that the question whether goods to be taxed have been subjected to a manufacturing process so as to produce a new marketable commodity, is the decisive test in determining whether an ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision as to the rate of tax for the relevant assessment year in the instant case. Grinders, which were not covered by item 41-B and thus not included in the definition of "domestic electrical appliances" as under item 41-B meaning electrical appliances, normally used in the household and similar electrical appliances used in hotels, restaurants, hostels, offices, educational institutions, hospitals, train kitchens, aircrafts or ships, pantries, canteens, tailoring establishments, laundry shops, hair dressing saloons and in similar establishments, it seems, until the introduction of item 41-E with effect from January 1, 1983 in the Schedule, fell under item 81 wherein all machinery (other than those specifically included in the Schedule) wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to think otherwise. The Tribunal has in essence held that the grinders after being attached with electric motors, did not change their identity. It is not necessary, however, although the Tribunal has so said, to examine whether the grinders when sold to the assessee or purchased by him were electric grinders or not because if they were electric grinders at that point of time, they were to be assessed in accordance with the prescription with respect to the commodities under item 41-B or any such other item which applied to the electrical appliances. Why they were treated as not covered by item 41-B for the tax purpose at that point of time is not a relevant question. But what is relevant is to examine whether by the contrivance provided t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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