9911796707
TMI Blog2009 (2) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Khaitan Electricals Ltd., Faridabad, has referred the following questions of law for opinion of this court, vide order dated March 20, 1995: "(i) Whether the cooler pump, a component of an air-cooler can be termed as an electrical appliance and attract tax at the first stage of sale under section 18 read with entry 16? (ii) Whether the cooler pump is monoblock pump and is excluded from the levy of tax at the first stage of sale under entry 16? (iii) Whether interest under section 25(5) is justified even when the honourable Supreme Court in a judgment dated May 13, 1994 in the case of Frick India Limited v. State of Haryana read with judgment reported as [1994] 95 STC 188 has held that in these circumstances the interest under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act as it is an item covered under entry 16 of the notification dated March 18, 1988 read with notification dated December 30, 1987. The assessing authority further held that the petitioner-company being first dealer in Haryana was liable to pay tax on the sale of cooler pumps and charged tax. The assessing authority also saddled the petitioner-company with interest under section 25(5) of the Act on the ground that it did not pay tax along with returns on the sale of such cooler pumps. Copies of the assessment orders for all the three years dated October 30, 1992, March 10, 1993 and September 30, 1993 have been placed on record as annexures D/1 to D/3, respectively. The first appellate authority confirmed the view taken by the assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated his argument by submitting that an appliance is distinct from the material from which it is made. According to the learned counsel, appliance is a complete apparatus, device or an instrument and is distinct from the materials of which it is made. The cooler pump is merely a part of the air-cooler/desert cooler as is clear from the ISI specification (annexure "A") whereby it establishes that it is specified for "pumpset for desert coolers" and it falls within the scope of the item specified as "pumpset for use in desert coolers". Therefore, he has claimed that it is not an electric appliance covered by entry 16 of the notification dated March 18, 1988. Mr. Bansal, learned counsel has further argued that when notification dated March 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing sultry and humid season in summer. She has, thus, maintained that the orders passed by the revenue authorities as well as that of the Tribunal deserve to be upheld. After hearing learned counsel for the parties and perusing the paper book with their able assistance we find that it would be necessary to read entry 16 as it stood on December 30, 1987 and March 18, 1988 in juxtaposition, which reads thus: Notification dated December 30, 1987 Notification dated March 18, 1988 "16. Electrical appliances including fluorescent tubes, their parts and accessories but excluding electric bulbs (incandescent lamp), electric motors, motor starters and mono-block pumping sets;" "16. Electrical appliances excluding electric motor, motor starters an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of this court in the case of Rajindra Electric Store [1996] 102 STC 394 has already opined that the fluorescent tubes, starters, chokes and other items would not be electrical appliances within the meaning of entry 18 of Schedule A of the Act and, therefore, would not attract the levy of tax. The Division Bench of this court has also followed the judgment of the Gujarat High Court rendered in the case of Star Radio Electric Co. v. Commissioner of Sales Tax [1971] 27 STC 367, and also on various definitions of expression "electrical appliances" and "appliances". The view of the Division Bench is discernible from the following para, which reads thus (at page 396 of 102 STC): "Chokes, phatties and starters do not serve any purpose by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o doubt is left that a cooler pump in itself cannot be of any use and it is incapable of cooling the air in the absence of air-cooler/desert cooler fitted with various other items. If the cooler pump independent of any other item is capable of rendering service to the buyer then it might be regarded as an electrical appliance which indeed is not the situation. Therefore, we are of the view that the first question of law deserves to be answered in favour of the dealer and against the Revenue. As far as second question is concerned, it is also bound to be answered in favour of the dealer and against the Revenue because mono-block pumps are entirely different as has been conceded by the learned counsel for the parties. The third question reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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