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TMI Blog2018 (9) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... ed product i.e. Hybrid Amplifier or Line Extender as not an accessory of Cable T.V. covered by the said schedule entry C-II-124 but a general electronic item covered by the schedule entry C-II-126 ?" 2. Before we analyze the relevant entries in the schedule to the BST Act and the legal submissions made before us in relation thereto, it would be necessary to advert to some necessary facts. 3. The Assessee (M/s Khush Bhakht Electronic Engineers Pvt. Ltd.) is engaged in the manufacture and sale of Hybrid Amplifiers and other electronic instruments. In the context of this business activity, the Assessee is duly registered under the provisions of the BST Act. Since the Assessee was having some doubt regarding one of its products, i.e. a "Hybrid Amplifier" (described also as a "Line Extender") and the applicable tax rate in respect thereof, the Assessee filed an Application for determination of disputed question (the DDQ Application) before the Commissioner of Sales Tax under section 52 of the BST Act. For the purposes of this DDQ Application, the Assessee produced before the Commissioner its sale bill No.79 dated 11th March 1996 under which sale of the disputed product (Hybrid Amplifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifically required for Cable TV and therefore, it was covered by Schedule Entry No.C-II-124 as an accessory of the Cable TV. Thus, having regard to the functional utility of the product, the Commissioner held that the Hybrid Amplifiers were covered by Schedule Entry No.C-II-124 and liable to tax at 13%. It is in this manner, the Commissioner decided the DDQ Application filed by the Assessee vide his order dated 1st February 1997 (for short, the "DDQ Order"). 6. Being aggrieved by this DDQ order passed by the Commissioner, the Assessee challenged the same before the MSTT. It was the contention of the Assessee before the MSTT that the use of Hybrid Amplifiers was not restricted to Cable TV alone and could also be used for several other purposes such a drivers, pre-amplifiers for an induction furnace and cautery unit. Similarly, it also was used for ultrasonic applications. In this regard, the Assessee also submitted an expert opinion's report dated 19th August 1998 before the MSTT to show the different uses for which the impugned product could be used. Apart from this, the Assessee also disputed the Commissioner's finding that the function of Hybrid Amplifiers are akin to a TV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the Assessee. 9. We have heard Mr Sonpal at length and have perused the papers and proceedings in the present Reference Application including the DDQ order passed by the Commissioner dated 1st February, 1997 as well as the order passed by the MSTT dated 29th June 2002. 10. The real question that arises for our consideration is whether the impugned product falls within Schedule Entry C-II-124 which deals with TV Sets, Antennas etc. and their accessories or whether the same would fall within Schedule Entry C-II-126 which deals with the electronic systems, instruments and appliances and components, parts and accessories of any of them. 11. Schedule Entry C-II-124 reads thus :- Entry Description of the goods Rate Rate Period 124 Television sets, television cameras, television receivers, television monitors, antennas and components, parts and accessories of any of them. Rate reduced to 6 % on sale of T.V. sets by Electronics Corporation of India to Govt. Recognized and/or aided secondary school, Junior training colleges, colleges of Education in the State, refer entry I-2 of Noti. U/s 41, w.e.f. 1-10-1995. 13 % 13 % 1-10-1995 to date 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the Schedule Entry C-II-124 which deals with TV sets, TV cameras, TV receivers, TV monitors, Antennas, components, parts and accessories of any of them. If the impugned product falls within Schedule Entry C-II-124, then necessarily the same would fall outside the purview of Entry C-II-126. 15. From the facts that have been placed before us and also before the authorities below, it is quite clear that though Hybrid Amplifiers may be used for Cable TV transmission to the extent that it boosts the signal that has to be transmitted, it has very many other uses. According to the experts' opinion (and which was placed before the MSTT by the Assessee), it can be seen that the impugned product is capable of amplifying signals over a range of 48 MHz to 550 MHz. The maximum output is 120 dBU. For all these reasons, according to the experts' opinion, the impugned product (viz. Hybrid Amplifiers) could be used for a variety of applications including in the aeronautical field, navigation etc. to name a few. The expert further opined the difference between the properties of an Antenna and that of the impugned product viz. Hybrid Amplifiers. According to the experts' opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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