Concessional sales tax for speakers sold with electronic goods applies despite a higher general schedule rate.

Speakers were treated as electronic goods covered by the concessional notification because they fell within the scope of items sold with car radios, radios and TV sets, which are electronic in nature. Although Entry 11 of the First Schedule separately covered sound transmitting equipment including loudspeakers and spare parts, the reduced rate under G.O.P.No.187 CT & RE dated 30.03.1990 applied to electronic goods and components not excluded from its ambit. The higher general rate was therefore not sustainable, and the concessional rate of tax applied.

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Issues: Whether the sale of speakers by the assessee was entitled to the concessional rate of tax under G.O.P.No.187 CT & RE dated 30.03.1990, or whether it was liable to tax at the higher rate under Entry 11 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Entry 11 of the First Schedule covered sound transmitting equipment including telephones and loud speakers and spare parts thereof. The notification reducing the rate to 3% applied to electronic goods and components falling under the First Schedule, except those excluded. The speakers in question were sold along with car radios, radios and TV sets, which are electronic items. On that basis, the goods were treated as falling within the scope of the concessional notification.

Conclusion: The assessee was entitled to the benefit of the concessional rate of tax, and the higher levy was not sustainable.

Ratio Decidendi: Where goods sold are electronic in nature or are sold as part of electronic items covered by the concessional notification, the reduced rate under the notification applies notwithstanding the higher general rate under the schedule entry.

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