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TMI Blog1997 (7) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... sales tax for the year 1976-77 by the Excise and Taxation Officer by order dated July 24, 1980. The turnover of Rs. 44,110 relating to battery cells was assessed to tax at 10 per cent. The assessee s plea was that battery cells were not to be subjected to the higher rate of tax inasmuch as those were not in the category and in the nature of "electrical goods". The Assessing Authority, however, took the view that the higher rate of 10 per cent was applicable to the electrical goods as mentioned at Sr. No. 17 of Schedule "A" to the Act. Section 5(1) of the Act laid down the rate of sales tax at 10 per cent on the goods specified in Schedule "A" to the Act. 3.. The Deputy Excise and Taxation Commissioner in assessee s appeal upheld the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely in the Shorter Oxford English Dictionary. The word "battery" carries several meanings including the ones as under: "A number of Leyden jars so connected that they may be charged and discharged simultaneously: A series of cells, each containing the essentials for producing voltaic electricity, connected together." The word "cell" has also different meanings including the following: "A compartment, the space between the ribs of a vaulted roof; an enclosed space; cavity; or sac; in organized bodies or in mineral products; any hollow receptacle or containing cavity." 6.. A bare perusal of the definitions of the two words "battery" and "cell" gives a clear indication that the function of a battery cell is to transmit or distribute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls" was examined by the Madhya Pradesh High Court in Bansilal Agarwal and Bros. v. Commissioner of Sales Tax, Gwalior [1958] 9 STC 100. The relevant entry under the Madhya Bharat Sales Tax Act, 1950 specified "torch cells" also within the inclusive definition of "electrical goods". Therefore, on the basis of the definition, as given in the said Act, electrical goods were held to include a torch cell also. 9.. Allahabad High Court in Commissioner of Sales Tax v. Bharat Traders [1974] 33 STC 3 has examined the expression "electrical goods" and has observed that such goods must be used by electrical energy and must answer the description of the "electrical goods" also. Wooden gittis, switch boards and battens were not worked by electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently by an amendment and thereby dry cells were specifically mentioned therein. It was, therefore, held that dry cells need not be taxed as accessories to torches and other electrical gadgets and appliances or as accessories to radios/transistors. It would be thus clear that the use of the battery cell assumes significance while examining its character. It is true that battery cells were in the entry as accessories and if the relevant description enabled the levy of tax under a specified entry, tax has to be levied on battery cells treating these to be accessories to the electrical goods. 11.. This High Court has examined entry 17 of Schedule "A" to the Act in Karnal Machinery Store v. Assessing Authority [1973] 31 STC 3. A questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for motion." The view taken in the above case has been followed in Singla Electric Store v. State of Punjab [1996] 102 STC 427 (P H). 13.. It would be thus clear from the above discussion that determination, whether an item was in the nature of electrical goods or not, would largely depend upon its use and also on the manner in which it is treated in common parlance. Battery cells are used as accessories to electrical goods inasmuch as they transmit energy/power to an electric equipment. In common parlance also, battery cells are not called to be in the nature of electrical goods but as accessories, helping the operation of an electrical item. 14.. Entry 17 in Schedule "A" speaks about the accessories while specifying the excepted i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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