Reconditioned machinery is not automatically old or second-hand; fiscal concession depends on factual enquiry into its true character.

Reconditioned printing machinery imported and installed by the assessee could not be treated as old or second-hand merely because it had been reconditioned. Entitlement to concessional sales tax under the Government order depended on the true character of the machinery and the extent of reconditioning, which had to be examined on the available material. The assessing authority had not made that factual enquiry. The rejection of the concessional claim was therefore unsustainable and was set aside, with the matter remitted for reconsideration on the relevant material.

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Issues: Whether reconditioned printing machinery imported and installed by the assessee could be treated as old or second-hand machinery so as to deny concessional sales tax under the Government order issued under section 8-A of the Karnataka Sales Tax Act.

Analysis: The entitlement to concession turned on the true character of the machinery after reconditioning. The materials placed before the authority and before the Court indicated that the machinery was imported as reconditioned machinery and not automatically as old or second-hand machinery. Whether such machinery falls within the exclusion in the Government order depends on the facts and the nature of the reconditioning, and cannot be rejected merely by assuming that all reconditioned machinery is second-hand. The assessing authority had not undertaken that enquiry on the material available.

Conclusion: The rejection of the concessional claim was unsustainable and was set aside. The matter was directed to be reconsidered on the relevant material, and the petitioner succeeded.

Ratio Decidendi: Reconditioned machinery is not per se old or second-hand machinery for the purpose of denying fiscal concession; its true character must be determined on the facts and the extent of reconditioning.

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