1978 (4) TMI 218 - HC - VAT and Sales Tax

Drawing Tools Exempt from Sales Tax: High Court Decision

The High Court of Allahabad held that T. squares and drawing-boards are considered 'mathematical survey instruments' exempt from sales tax based on their ... Classification of goods for tax exemption - mathematical survey instruments - exemption under Notification No. S.L-911/X dated 31st March, 1956 - ordinary use and plurality of uses not excluding classification - departmental manual as evidence of classificationMathematical survey instruments - exemption under Notification No. S.L-911/X dated 31st March, 1956 - departmental manual as evidence of classification - ordinary use and plurality of uses not excluding classification - T. squares and drawing-boards are within the phrase 'mathematical survey instruments' and hence exempt under the notification. - HELD THAT: - The court accepted the finding of the authorities that T. squares and drawing-boards are listed at serial number 160 of the Manual of Orders of the Irrigation Department, U.P., as 'survey and mathematical instruments' and treated that listing as strong evidence of their classification. The court further relied on the ordinary or normal use of these articles for survey and mathematical purposes to support their inclusion within the exempt category. It rejected the contention that the possibility of other uses would take the articles out of the exempt class, holding that plurality of uses does not exclude goods from being classified according to their normal use and departmental recognition. On these grounds the authorities were held to be justified in treating the turnover of T. squares and drawing-boards as exempt from sales tax under the cited notification.Reference answered in the affirmative in favour of the assessee; turnover of T. squares and drawing-boards held exempt under the notification.Final Conclusion: The court affirmed that T. squares and drawing-boards, being listed in the departmental manual and having ordinary use for survey and mathematical purposes, fall within 'mathematical survey instruments' and are exempt from sales tax under Notification No. S.L-911/X dated 31st March, 1956. The High Court of Allahabad considered whether T. squares and drawing-boards are 'mathematical survey instruments' exempt from sales tax. The court held that based on their mention in the Irrigation Department's Manual as such instruments, they qualify for exemption. The decision was in favor of the assessee, and the question was answered in the affirmative. (Case citation: 1978 (4) TMI 218 - ALLAHABAD HIGH COURT)