Electric motors not exempt under Punjab GST Act Schedule 'A', liable for 10% tax.

The High Court ruled that electric motors are not considered excepted goods under entry 17 of Schedule 'A' of the Punjab General Sales Tax Act, 1948. As a result, electric motors are liable to tax at a rate of 10 per cent, rather than the claimed six per cent by the dealer. The court relied on previous decisions and legal principles to support its judgment, ultimately ruling in favor of the Revenue and against the dealer.

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Issues:
Interpretation of entry 17 of Schedule 'A' of the Punjab General Sales Tax Act, 1948 regarding the tax rate applicability on electric motors.

The judgment delivered by the High Court addressed the issue of whether electric motors fall within the ambit of the excepted goods mentioned in entry 17 of Schedule 'A' of the Punjab General Sales Tax Act, 1948, and are thus liable to tax at the rate of six per cent. The court noted that a similar question had been previously decided in favor of the Revenue in the case of Gupta Agencies v. State of Punjab [1994] 92 STC 543 (P&H). The court also referred to an earlier Division Bench judgment in Madan Lal Pawan Kumar v. Punjab State [1982] 49 STC 77 (P&H), which held that electric motors are not considered electric equipment required for the generation, transmission, and distribution of electric power. Therefore, the court concluded that electric motors are not covered by the excepted goods mentioned in entry 17 of Schedule 'A' and are liable to tax at the rate of 10 per cent, rather than the claimed six per cent by the dealer. The court further mentioned that this issue had been previously considered in the case of Singla Electric Store v. State of Punjab [1996] 102 STC 427. Ultimately, the court, in line with the earlier view taken by two Division Benches, ruled in favor of the Revenue and against the dealer. The judgment provides a clear interpretation of the law and sets a precedent based on previous decisions and legal principles.

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