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TMI Blog1998 (11) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... ral machinery. The dispute is whether this entry machinery (all kinds) and parts and accessories thereof would include computers within its ambit. 3.. The First Schedule of the Act of 1979 contains separate entries at Sl. No. 28 and 52 which are even in existence today. 28.. Electrical and electronic goods, appliances, instruments and apparatus and parts and accessories thereof but excluding those specified elsewhere. 52.. Machinery (all kinds) and parts and accessories thereof but excluding agricultural machinery. 4.. The submission of the learned counsel for the petitioner is that a notification was required under section 3(1) for levy of tax in respect of electronic goods, spares, instruments, apparatus, parts and accessories thereof. Since no such notification have been issued the respondent have no jurisdiction to levy the tax considering computer as a machinery. It is submitted that computer may be a machinery but since there is a specific entry for electronic goods, spares, instruments, and apparatus and unless there is a notification tax could not be charged. 5.. On behalf of the respondent it is stated that computer is a machine and therefore tax could be l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r are electronicthat is they work by sending electrical signals through wires. The smallest digital computers consist only of the memory and the processor. But larger digital computer are part of systems they also contain input equipment and output equipment. The operator uses an input device, such as a keyboard, to enter instructions and data into the computer. After processing is complete, an output device translates the processed data into a form understandable to the user-words or pictures, for example typical output devices include printers and visual displays that resemble television screens. People have used calculating devices since ancient times. The first electronic digital computer built in 1946, filled a huge room. Since then, rapid improvements in computer technology, have led to the development of smaller, more powerful, and less expensive computers. In addition to digital computers, there are two other general types of computers; analog computers and hybrid computers. Analog computer work directly with a physical quantity, such as weight or speed, rather than with digits that represent the quantity. Such computers solve problems by measuring a quantity, such a te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of its parts moved when water in the tank was allowed to escape from it through a hole into pipes. The water was pushed or drawn along with pipes by the force of gravity. The Privy Council, therefore, held that machinery must mean something more than a solid structure built upon the ground, whose parts either do not move at all, or if they do move, do not move the one with or upon the other in interdependent action with the object of producing a specific and definite result. Their Lordships were of the view that there was great danger in attempting to give a definition of the word machinery which would be applicable in all cases and it may be impossible to succeed in such an attempt. It was observed that if their Lordships were obliged to run the hazard of the attempt they would be inclined to say that the word machinery when used in the ordinary language prima facie, means some mechanical contrivances which by themselves or in combination with one or more other mechanical contrivances by the combined movement and interdependent operation of their respective parts generate power, or evoke, modify, apply or direct natural forces with the object in each case of effecting so d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. FD 112 CET 93 (iii) Bangalore, dated March 30, 1994 was issued in which there was only four items which are as under: 1. Machinery (all kinds) and parts and accessories thereof but excluding agricultural machinery. 2.. Motor vehicles (all kinds) and parts and accessories thereof including chassis-Motor vehicles (see notes 1 and 2). 3.. Packing materials, namely: (i) to (vii)................. 4.. Raw materials, component parts and inputs which are used in the manufacture of an intermediate or finished product. 10.. Thereafter another notification was issued on March 31, 1997-No. FD 109 CET 97(10), wherein the commodities were charged to tax at 4 per cent and entry 8 was for levy of tax on electrical and electronic goods, appliances, instruments and apparatus and parts and accessories thereof but excluding those specified elsewhere. 11.. If the legislative history is taken into consideration along with the notification which are issued from time to time, it would be evident that the notification dated April 30, 1992 was in accordance with the entry of the Schedule and that position continued till March 31, 1994. Since the notification of March 31, 1992 was rescin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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