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TMI Blog2001 (1) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sreedhar, Ajith, Y. Raja Gopala Rao, G. Venkatesh, T. Anil Kumar and Ram Kumar for the parties. [Judgment per : B.N. Kirpal, J.]. - Special leave granted. 2.The only question which arises for consideration in this case is whether Fully Automatic Washing Machine can be regarded as "electronic goods" so as to attract a lower rate of sales tax. 3.The undisputed facts are that the appellants are manufacturers and dealers in televisions, audios, washing machines etc. and are registered dealers with the Sales Tax Department at Hyderabad. Though the appellants deal in both Semi and Fully Automatic Washing Machines, the present controversy is only with regard to Fully Automatic Washing Machines. 4.Prior to 20th July, 1988, the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants claimed before the Sales Tax Authorities that its Automatic Washing Machines worked on Fuzzy Logic Computer Program. In other words, Fully Automatic Washing Machines were micro-computer-controlled washing machines that actually worked on the principle of auto selection of the various parameters. The entire work of washing the clothes, after the same were loaded into the machine, was carried out automatically, the machines being controlled and operated by micro processor technology. 7.Without accepting the contention of the appellants, the provisional assessment order for the period 1st April, 1994 to 31st March, 1995 was passed raising a demand of Rs. 8,83,143/- as differential tax. For subsequent period also tax was demanded, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or materials are also electronic goods as per the said definition. In addition thereto, sub-clause (i) of para 2 of the notification specifically provides that in the definition of the term "electronic goods" consumer electronics are also included. What has to be seen is whether the automatic washing machines are electronic appliances or equipments operating on electronic principle. 11.Mr. Kapil Sibal, the learned Senior Counsel appearing for the appellants contended that it should be so regarded. Mr. M.N. Rao, the learned Senior Counsel submitted that in addition thereto, the automatic washing machine was in any case an item which should be regarded as consumer electronics and therefore would be entitled to the benefit of the said notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y involved in the said machines. It is not in dispute that the running of this machine and its functions and controlled by programmed microchips. These microchips control and direct electric current in a programmed manner so as to enable the washing machine to carry out its functions. The operations which are automatically controlled in the working of the machines are that of (a) wash cycle, (b) rinse cycle and (c) spin/dry. It has been certified by the Indian Institute of Technology in the present case that the Automatic Washing Machine of the appellants has the facility of water level control delay program. It has various programs which are controlled through micro processor chips. In other words, what the said notification requires ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... radio receivers or tape-recorders, all of them are controlled or work with the help of chips or micro processors. Even though washing machine is not specifically mentioned as one of the items, it would fall under the category of "Consumer Electronic Product". Like a record player or radio, it works with the aid of micro processor and falls within the definition of "electronic goods" as contained in the said notification dated 20th July, 1988. 15.It was submitted by the learned Senior Counsel for the respondent that washing machine is specifically mentioned in Item No. 38(iv) of the Schedule to the said Act. Therefore, it was contended that notification of 20th July, 1988, cannot apply because in the case of washing machine the rate of du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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