Concessional tax for generator sets prevailed after the specific tariff entry ceased to apply, affirming relief for the assessee.

Concessional tax at 3% applied to generator sets for the assessment years 1995-96 and 1996-97 because the specific First Schedule entry attracting tax at 16% had ceased to cover those goods from 01.04.1995. The relevant notification under Section 9 of the APGST Act, 1957, as continued by G.O.Ms.No.252, governed machinery propelled or operated by power or fuel during the period in question. On that basis, the Tribunal correctly rejected reassessment under the higher rate, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to concessional tax at 3% under the relevant Government Orders for generator sets for the assessment years 1995-96 and 1996-97, or whether the goods continued to fall under the specific entry attracting tax at 16%.

Analysis: The relevant notification issued under Section 9 of the APGST Act, 1957 granted concessional tax on machinery propelled or operated by power or fuel, and G.O.Ms.No.252 continued that concession from 01.04.1995. The critical factual position was that generator sets had been removed from the specific entry in the First Schedule with effect from 01.04.1995. Since the assessment years in question were 1995-96 and 1996-97, the specific entry relied upon by the Revenue had no application. The Tribunal was therefore justified in holding that the concessional notification governed the turnover and in rejecting the reassessment based on 16% tax.

Conclusion: The assessee was entitled to the concessional rate of tax, and the Revenue's challenge to the Tribunal's order failed.

Final Conclusion: The tax revisions were not maintainable on merits, and the Tribunal's order granting relief to the assessee stood affirmed.

Ratio Decidendi: Where the specific tariff entry had ceased to apply from the relevant date and a valid concessional notification covered the goods for the assessment period, tax could not be levied under the erstwhile specific entry.

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