Sales tax classification turns on commercial use: a biscuit baking oven used as manufacturing accessory falls under machinery entry.

A biscuit baking oven was held classifiable under the sales tax entry for machinery or machinery accessories rather than as an independent electrical appliance. The common parlance test and the commercial nature of the goods controlled the classification: although electrically operated, the oven was meant for use as an accessory to a biscuit manufacturing plant and was not an independent electrical good. The determining factor was the nature of the item and its actual use in manufacturing, so an article adapted as part of plant or machinery falls within the machinery entry. On that basis, the revision by the State failed.

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Issues: Whether a biscuit baking oven falls under entry 38(iv) of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957 as an electrical appliance, or under entry 83 as machinery or an accessory to machinery.

Analysis: Entry 38(iv) covers electrical goods, instruments, apparatus and appliances as independent items, including ovens. Entry 83 covers machinery propelled or operated by electricity and includes spare parts and accessories of such machinery. The nature of the goods and the use to which they are put determine the applicable entry. An item which is not an independent electrical appliance but is adapted for use as part of, or as an accessory to, plant or machinery used in manufacturing falls under entry 83. Applying the common parlance test, a biscuit baking oven meant for use as an accessory to biscuit manufacturing plant is not assessable merely because it is electrically operated.

Conclusion: The biscuit baking oven is taxable under entry 83 and not under entry 38(iv); the revision filed by the State fails.

Ratio Decidendi: For sales tax classification, the decisive factor is the commercial nature and use of the goods, and an electrically operated article used as an integral part or accessory of manufacturing machinery is not necessarily classifiable as an independent electrical good.

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