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TMI Blog1995 (2) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... as the Central Sales Tax Act, 1956 ("the Central Act"). For the period from May 1, 1986 to April 30, 1987, it was assessed both under the Central Act and the Bombay Act by the Assistant Commissioner of Sales Tax (Assessment) by his orders of assessment dated March 20, 1990. In its assessment order under the Central Act, the Assistant Commissioner rejected the claim of the assessee for being assessed in respect of the sales of computers made to educational institutions at the concessional rate of tax applicable to sales of scientific equipments and instruments to educational institutions, etc., by virtue of the notification issued by the State Government under section 8(5) of the Central Act. According to the assessee, the computers sold by it in the course of inter-State trade or commerce to educational institutions for use in the teaching of science and to laboratories or institutions which carried on research work for the promotion of scientific or educational object were scientific equipments and instruments covered by the said notification. The Assistant Commissioner did not accept the above contention of the assessee, as he was of the opinion that the benefit of the above noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peruse the said notification, which is set out below: "Notification No. STA 1571/408/M-2, dated the 21st February, 1972. (Maharashtra Government Gazette, Extraordinary, Part IV-A, dated 21st February, 1972). In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (LXXIV of 1956) and in supersession of Government Notification, Finance Department No. STA. 1558/163235-G-1, dated the 22nd September, 1959, the Government of Maharashtra hereby directs that in respect of scientific equipment and instruments, components and spare parts of such equipment and instruments and chemicals (hereinafter referred to as "the said goods"), the tax payable under the said Act by any dealer having his place of business in the State of Maharashtra in respect of the sale by him from such place of business of the said goods in the course of inter-State trade or commerce to an educational institution for use in the teaching of science or to a hospital for its use, or to a laboratory or institution which carries on any research work for the promotion of a literary, scientific, artistic or educational object and which is not run with the motive of making prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessional rate is claimed by the assessee were made to the following parties: 1. Advisory Board of Energy, New Delhi. 2. National Institute of Science, Technology and Development Studies, New Delhi. 3. Remote Sensing Applications Centre for Resource Evaluation and Geoengineering, Aligarh. 4. Guru Govind Singh College of Commerce, University of Delhi, New Delhi. 5. National Metallurgical Laboratory Council of Scientific and Industrial Research, Jamshedpur. 6. Institute of Management Technology, Gaziabad. 7. Central Scientific Instrument Organ, Chandigarh. 8. Regional Research Laboratory Council of Scientific Industrial Research, Hyderabad. and certificate in the prescribed form, duly filled-up issued by all these institutions were produced before the authorities. According to the assessee, it was entitled to get the benefit of reduced rate of tax under the above notification in respect of the sales of the computers in question. The above contention of the assessee was rejected by the sales tax authorities including the Tribunal not on interpretation of the expression "scientific equipment and instruments" appearing in the notification in question but with reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be four per cent of his turnover. ............................... (5) Notwithstanding anything contained in this section, the State Government may, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, and subject to such conditions as may be specified therein, direct,- (a) that no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in subsection (1) or sub-section (2) as may be mentioned in the notification; (b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of interState trade or commerce, by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular scientific instrument or equipment falls within entry 33 or not and for no other purpose. Computers being specified in entry 97(a) cannot be regarded as "scientific equipment or instrument" falling under entry 33 in view of the specific exclusion contained therein. But that would not mean that computers are not scientific equipments or instruments. 5. The benefit of reduced rate of tax under the notification in question issued under section 8(5) of the Central Act is available in respect of inter-State sales of "scientific equipment and instruments" which meet the requirements specified therein. The only controversy therefore is whether the "computers" sold by the assessee can be regarded as "scientific equipments or instruments" which has to be decided with reference to the true meaning of the expression "scientific equipment and instrument", and not from the language of entry 33 of Part II of Schedule C to the said Act. 6.. The expression "scientific equipment and instrument" is an expression of wide import and takes within its sweep not only instruments which in ordinary definition or in the acceptation of experts would fall within that category, but also instrume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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