Classification of belt grinding machine under sales tax schedule favours machinery worked by electricity over electrical goods entries.

A belt grinding machine driven by an electric motor was held to be principally an abrasive machine, not an electrical appliance of the domestic type or an electrical good covered by entries 41 or 41-B of the Tamil Nadu General Sales Tax Act, 1959. The amended entry 41 was limited to electrical goods, while entry 81 covered machinery worked by electricity, subject to the saving for goods specifically listed elsewhere. Because electricity was only the mode of operation and the machine was not intrinsically electrical, it was correctly classified under entry 81 as machinery worked by electricity.

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Issues: Whether a belt grinding machine sold by the assessee was classifiable under entry 41 or entry 41-B of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 as electrical machinery or electrical grinder, or whether it fell under entry 81 as machinery worked by electricity.

Analysis: The machine was found to be principally an abrasive machine operated by an electric motor, and not an electrical appliance of the domestic type contemplated by entry 41-B. The amended entry 41 referred only to electrical goods and no longer included electrical machinery, while entry 81 specifically covered machinery worked by electricity, subject to the saving for goods specifically mentioned elsewhere in the Schedule. On the facts, the machine was not intrinsically electrical in nature; electricity was only the mode by which it was operated. The appropriate classification was therefore the residuary machinery entry for machinery worked by electricity rather than the electrical goods entries.

Conclusion: The belt grinding machine did not fall under entry 41 or entry 41-B and was correctly classifiable only under entry 81 as machinery worked by electricity, in favour of the assessee.

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