2006 (9) TMI 514

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..... hermal generating sets for captive generation of power is leviable, treating the same as machinery? (3) Whether entry tax at two per cent has been levied without authority of law on the value of cement bags brought from outside the State of Karnataka between April 1, 1997 and January 6, 1998 and subsequently sold in the State of Karnataka? (4) Any other question of law this honourable court deems fit in the facts and circumstances of this case. The petitioner is a company registered under the Companies Act, 1956 and is covered by the Karnataka sales tax laws. It is a dealer engaged in the activity of manufacture and sale of cement in the State of Karnataka. The assessing authority DCCT (Assts-II) Fast Track, Bangalore, concluded .....

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..... arts for diesel generating sets are exempt from levy of tax and they cannot be classified as machinery. Diesel generating sets are classified as electrical goods. He further says that the authority without properly understanding the material on record has chosen to levy tax on the value of electrical parts purchased for thermal generating sets treating the same as machinery. He relies on a number of judgments. Per contra, Smt. Sujatha, learned Government Advocate, says that in the light of the specific entry available in terms of entry 52, the authorities are right in levying tax under entry 52. She says that entry 28 is not available to the petitioner. After hearing, we have carefully perused the material placed on record. Admitted .....

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..... ard to interpretation of statutes. 1990 STC 129 (sic) is also a case dealing with interpretation of statute. The petitioner also relies on a judgment of this court reported in P. R. Chindak v. Assistant Commissioner of Commercial Taxes (Appeals) [1994] 93 STC 139 (Karn). In that case also, the court was considering with regard to interpretation of taxing statutes. But the facts of this case would show that there are two entries available on record. The special entry of machinery would cover spare parts as well. In these circumstances, the general entry of electrical goods cannot be pressed into service by the assessee for the purpose of taxation. In fact, in the said judgment, the court ruled that a special entry overruled general entry. Th .....

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