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of <h1>Air curtains not classifiable under Entry 17 Part C; taxed under Entry 22 Part DD at higher rate</h1> <h3>M/s. Almonard Limited, Rep. by its Power of Attorney Mr. R. Raghupathy Versus The Commercial Tax Officer, State of Tamil Nadu, Rep. by the Deputy Commissioner CT, Chennai, The Secretary Sales Tax Appellate Tribunal, (Main Bench), Chennai</h3> HC held that air curtains do not qualify for classification under Entry 17, Part C, and therefore cannot be taxed at 8% as electrical fans; they fall ... Rate of tax of air curtains - taxable at 8% as that of the electrical fans in terms of Entry 17 of Part C of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 or at 12% in terms of Entry 22 of part DD of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959? - HELD THAT:- The petitioner cannot claim the air curtains sold by the petitioner merits classification under Entry 17 of part C. Therefore, there are no merit in the present Writ Petitions. The Writ Petitions are liable to be dismissed and are accordingly dismissed. ISSUES PRESENTED AND CONSIDERED 1. Whether 'air curtains' sold by the assessee are classifiable under Entry 17, Part C (electrical fans of all types) of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, attracting tax at 8%. 2. Whether 'air curtains' fall within Entry 22, Part DD (electrical instruments, apparatus, appliances of all kinds, other than those specified elsewhere in this Schedule) of the First Schedule, attracting tax at 12% w.e.f. 01.04.2000. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Classification under Entry 17, Part C (Electrical fans) - Legal framework Entry 17, Part C, describes 'Electrical fan of all types' and prescribes a rate of 8% (w.e.f. 17.07.1996). Classification under this entry requires that the good be properly characterisable as an electrical fan within the ordinary meaning and salient features of that description. Precedent Treatment No prior judicial precedent was cited or relied upon in the impugned order to construe Entry 17 in relation to air curtains; the Court and Tribunal proceeded on textual and functional analysis of the goods themselves. Interpretation and reasoning The Tribunal analysed the technical description and functional characteristics of air curtains: a sheet of moving air blown across openings to provide environmental separation, energy conservation for conditioned areas, prevention of ingress of insects, rain and dust, and incorporation of motors and impellers. The Tribunal found these features to be more salient and functionally broader than those of a mere electrical fan. Ratio vs. Obiter The conclusion that air curtains are not electrical fans is part of the operative ratio, as it directly supports the classification decision and the restoration of the assessment under the alternate entry. Conclusion Air curtains do not fall within Entry 17, Part C, as electrical fans of all types and therefore are not taxable at 8% under that entry. Issue 2 - Classification under Entry 22, Part DD (Electrical instruments, apparatus, appliances other than specified elsewhere) - Legal framework Entry 22, Part DD, encompasses 'Electrical instruments, apparatus, appliances of all kinds (other than those specified elsewhere in this Schedule)' and lists various illustrative items, prescribing a rate of 12% w.e.f. 01.04.2000. Goods not specifically covered by a separate entry may be classifiable here if they are electrical appliances of the described character. Precedent Treatment No precedent was cited to displace or limit the ordinary operation of Entry 22; the Tribunal applied the entry as a residuary provision for electrical appliances not otherwise specified. Interpretation and reasoning The Tribunal reasoned that air curtains, having multiple functional attributes (environmental separation, energy conservation, insect/rain/dust exclusion) and being fitted with motors and impellers, possess salient features beyond those of simple fans and fall within the broad description of electrical instruments/appliances 'other than those specified elsewhere.' Given Entry 17 is specific to fans and Entry 22 is a general residual entry for electrical appliances not specified elsewhere, the Tribunal treated air curtains as captured by Entry 22. Ratio vs. Obiter The determination that air curtains are classifiable under Entry 22 and taxable at 12% is a central ratio of the decision, as it is the decisive legal conclusion that resolves the dispute over the applicable tax rate. Conclusion Air curtains are properly classifiable under Entry 22, Part DD, of the First Schedule and attract tax at 12% (w.e.f. 01.04.2000); the assessment under Entry 22 is therefore upheld and restored. Cross-reference - Interaction between Entries 17 and 22 Where a specific entry (Entry 17) covers a particular category (electrical fans), goods that do not fall within that specific description but are electrical appliances may be captured by a general residual entry (Entry 22). The Court/Tribunal applied this principle: air curtains' distinct functional and structural characteristics displace classification under the specific fans entry and bring them within the general appliances entry. Remedial and consequential determination The assessment made under Entry 22 at the higher rate (12%) on the declared turnover was held to be in order; the Writ Petitions challenging that classification were dismissed, with no order as to costs.
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