Concessional tax for electricity equipment does not extend to paint used on poles when a specific paint entry applies.

Aluminium paint used on electric poles for power distribution did not qualify for the concessional sales tax rate meant for plants, equipment and their accessories required for electricity generation or distribution. The court held that even if the poles could be treated as accessories, the paint itself was not an accessory necessary for that function because the poles could operate without it. A specific tariff entry covered paints of all kinds, so the paint fell within that entry and not the concessional notification. The departmental view was restored and the higher rate of tax applied.

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Issues: Whether aluminium paint used for painting electric poles required for distribution of electric power was entitled to the concessional sales tax rate under the notification for plants, equipments and their accessories, or was taxable under the specific entry for paints.

Analysis: The specific tariff entry covered paints of all kinds without regard to user or purpose. The concessional notification applied only to plants, equipments and their accessories required for generation or distribution of electric power. Even if electric poles used for transmission lines could be treated as accessories for distribution of electric power, paint used to paint those poles did not itself become an accessory required for distribution of electric power. The function of the pole could be performed without the paint, and the paint therefore fell outside the notification. The Tribunal's reasoning treating the paint as an accessory was unsustainable.

Conclusion: The paint was not entitled to the concessional rate and was taxable under the specific entry for paints at 10 per cent, not 3 per cent.

Final Conclusion: The revision succeeded and the departmental view was restored, with the disputed paint held chargeable to sales tax at the higher rate.

Ratio Decidendi: A concessional notification for plants, equipment and their accessories used in electricity generation or distribution does not extend to paint used on such equipment where the paint is not itself an accessory necessary for that function, especially when a specific taxing entry directly covers paints.

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