TaxTMI 
TaxTMI 
1978 (1) TMI 158
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.... with electrical motors was found to have escaped assessment and, accordingly, the assessing officer proposed to include this turnover in the taxable turnover. The assessees objected to the same on the ground that they were not dealers in cone winding machines fitted with electrical motors and that, therefore, the said sale proceeds were not liable to be included in the taxable turnover. They also contended that even if they were to be included in the taxable turnover, they are not "electrical goods" falling under item 41 of the First Schedule to the Act and that, therefore, they are liable to be taxed at multi-point at 3 per cent as any other goods. The assessing officer rejected both these contentions and held that the sale proceeds of co....
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.... the Appellate Assistant Commissioner deleting the turnover and included the same in the assessable turnover. It is as against this order of the Board that this appeal has been filed. The first contention of the learned counsel for the assessees was that the assessees are carrying on business in cotton textiles and that the sale of cone winding machines could not be treated to be their business or incidental or ancillary to their main business and, hence, it was not liable to be taxed. This contention is not tenable and it is directly against the decision of the Supreme Court in State of Tamil Nadu v. Burmah Shell Co. Ltd.[1973] 31 S.T.C. 426 (S.C.). and the two decisions of this Court that followed the Supreme Court decision, namely, St....
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....Entry 41 of the First Schedule at the relevant time read as follows: "41. All electrical goods, machinery, instruAt the point 9 per cent." ments, apparatus, appliances, accesof first sale sories and component parts (either in the State. sold as a whole or in parts), including fans, lighting bulbs, electrical earthenwares, porcelain and all other instruments, apparatus, appliances, accessories and component parts, the use of which cannot be had except with the application of electrical energy. This entry was substituted for the original entry by Madras Act 15 of 1964, which came into force on 1st September, 1964. Under the entry, as it originally stood, the word "machinery" did not find a place. Though the entry itself is rearranged, i....
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....the interposition of the word "machinery" after the words "electrical goods" in the entry. Ramakrishnan, J., held that the word "machinery" after the amendment of entry 41 would take its sense and scope from the term "electrical goods" that precedes it and several items like fans and other goods, the use of which cannot be had without the use of electricity which follow it and, therefore, the same requirement of machinery being electrical goods as laid down in William Jacks and Co. Ltd. v. State of Madras[1960] 11 S.T.C. 340. will continue to apply even after the amendment. It may be mentioned that in William Jacks' case(2), a Division Bench of this Court held that lathe even though driven by electrical energy will not come within the scope....