9911796707
TMI Blog1991 (4) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... to the public while taxable at the concessional rate of 3 per cent up to October 4, 1977 and at 4 per cent from October 5, 1977, in respect of the pumps sold to "the Government departments, local bodies and recognised institutions", in view of G.O. No. 1064, Revenue, dated June 9, 1967. After the assessments were complete, it transpires that the assessing officer thought fit to revise the rate of tax as, according to his opinion, the concessional rate of tax had been wrongly levied. The tax liability was accordingly revised and tax was levied at 8 per cent under section 55 of the Act as against 3 per cent and 4 per cent earlier levied in the assessment proceedings by treating the goods as covered by item 41 and applying G.O. No. 1064. According to the assessing authority, the goods were covered by item 99 of the First Schedule. The assessee thereupon filed appeals before the Appellate Assistant Commissioner. It was asserted that since the assessee had charged sales tax at the concessional rate in the sale bills, in accordance with the earlier assessment proceedings right from 1970-71, wherein the goods were held covered by item 41, therefore, there was no justification to revise th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the assessee, for a number of assessment years, had been permitted to charge concessional rate of tax for the sales made under the directions and with the approval of the Superintending Engineer of Highways and Rural Works and, therefore, it was not fair to reopen and revise the rate of tax, all of a sudden, and demand from the assessee the differential rate of tax on the goods already sold as, according to the Tribunal, that course offends equity and is hit by the doctrine of promissory estoppel. The Tribunal, however, did not consider or return any finding as to whether the goods in question were covered by item 41 or item 99 of the First Schedule. The Revenue, being aggrieved by the order of the Tribunal, is in revision in these three tax cases 3.. We have heard learned counsel for the parties. 4.. Both the assessing officer, when he chose to revise and reopen the completed assessments, and the Appellate Assistant Commissioner found that the submersible electrical pumps sold by the assessee fell under item 99 of the First Schedule and not under item 41 of the First Schedule. It is not disputed before us that in case submersible electrical pumps fell under item 41 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Government and by reason of the approval and consent, the appellant has been lulled into the belief that concessional rate of tax has been alone applicable in respect of the goods supplied to the local bodies of the Government at the direction of the Superintending Engineer, Highways and Rural Works." Thus, the Tribunal did not return any finding about the specific item of the First Schedule under which the submersible electrical pumps would fall, but it dealt with the issue in a different manner by applying the doctrine of promissory estoppel in favour of the assessee. It would, in our opinion, however, be advantageous at this stage to notice the two entries in the First Schedule to the Act to determine, under which specific entry the goods fall. Item 41 reads thus: "All kinds of electrical goods (other than those specified elsewhere in this Schedule) including wires, holders, plugs, switches, casings, cappings, reapers, bends, junction boxes, meter boxes, switch boxes, meter boards, switch boards, electrical earthenware and porcelainware and parts and accessories of all such goods." Item 99 reads thus: "Power driven pumps (including motor pumps, turbo pumps and monoblo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified elsewhere in the Schedule. Item 99 of the First Schedule covers "power driven pumps (including motor pumps, turbo pumps and monoblock pumpsets) for liquids". Submersible electrical pumps are power driven and operate on electricity and are generally used for pumping water. Since item 99 of the First Schedule covers power driven pumps, the appropriate item under which "submersible electrical pumps" would fall would be item 99. What is the definition of "electrical goods" has not been spelt out in the Act itself. Words which are not defined in a taxing statute but are words of everyday use, must be construed not in their scientific or technical sense but as understood in the common parlance. "Electrical goods" mentioned in item 41 of the First Schedule would, therefore, cover only "electrical goods" and not such goods which operate with the help of electricity, particularly where such goods are covered by any other entry in the Schedule. "Submersible electrical pumps", keeping in view the use to which the pumps are put and the manner in which they are understood in the trade by those who deal with them as also by those who use them, in common parlance, are basically onl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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