Accessory classification for electrical goods accepted for super-enamelled copper wire, reducing the applicable sales tax rate.

Super-enamelled copper wire was held to fall within the exception in item No. (17), Schedule A of the Punjab General Sales Tax Act, 1948, because it functioned as an accessory to electrical plant and equipment. Expert evidence showed it was used in winding motors, transformers, relays and energy motors, supporting its use in equipment required for generation, transmission and distribution. In the absence of rebuttal evidence from the State, the contrary view was rejected and the cited authority was found inapplicable on the facts. The goods were therefore taxable at 6% rather than 10%.

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Issues: Whether super-enamelled copper wire fell within item No. (17), Schedule A of the Punjab General Sales Tax Act, 1948, as an accessory to electrical plant and equipment, and was therefore taxable at 6% instead of 10%.

Analysis: The goods were examined in the light of the statutory entry exempting electrical goods other than electrical plant, equipment and their accessories required for generation, transmission and distribution. Expert evidence established that super-enamelled copper wire, though not itself used for generation, transmission or distribution, was used in winding motors, transformers, relays and energy motors and was therefore used for making equipment required for generation. With no rebuttal evidence from the State, the wire was treated as an accessory to electrical plant and equipment. The contrary view was rejected, and the cited authority was found inapplicable on the facts.

Conclusion: Super-enamelled copper wire was covered by the exception in item No. (17), Schedule A, as an accessory, and sales tax was chargeable at 6%.

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