Electric motors excluded from excepted goods under sales tax entry 17, attracting the higher tax rate.

Electric motors were held not to fall within the excepted goods in entry 17 of Schedule A to the Punjab General Sales Tax Act, 1948, because they are not equipment used for generation, transmission or distribution of electric power. Relying on earlier Division Bench authority, the court applied the same interpretation and confirmed that such motors are taxable at the higher rate. The result was against the dealer and in favour of the Revenue.

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Issues: Whether electric motors fall within the excepted goods covered by entry 17 of Schedule A to the Punjab General Sales Tax Act, 1948, so as to attract tax at the lower rate.

Analysis: The issue was governed by earlier Division Bench decisions holding that electric motors are not electric equipment required for generation, transmission or distribution of electric power and therefore do not fall within the excepted goods in entry 17. Following the same line of authority, the question was answered without further detailed discussion.

Conclusion: Electric motors do not fall within the excepted goods in entry 17 of Schedule A and are liable to tax at the higher rate. The answer is against the dealer and in favour of the Revenue.

Ratio Decidendi: Electric motors, not being equipment used for generation, transmission or distribution of electric power, are excluded from the excepted goods described in entry 17 of Schedule A to the Punjab General Sales Tax Act, 1948.

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