TaxTMI 
TaxTMI 
1992 (11) TMI 267
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....hedule 'A' to the Punjab General Sales Tax Act, 1948, and thus liable to sales tax at the rate of six per cent?" The facts are being taken from G.S.T.R. No. 19 of 1985. The applicant, a registered dealer, dealing in resale of electric goods, filed his quarterly returns for the assessment year 1974-75, declaring gross turnover at Rs. 2,23,162.07. Deductions were claimed in respect of sales of tax-free goods and sales made to the registered dealers. The Assessing Authority not being satisfied with the returns filed, issued a statutory notice in form S.T. XIV under section 11(2) of the Punjab General Sales Tax Act (hereinafter referred to as "the Act"), requiring the dealer to produce his accounts. The dealer appeared before the Assessin....
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....on reproduced in para No. 1 of this order. In this reference, the challenge is to the levying of sales tax at the rate of 10 per cent on electric motors instead of 6 per cent. Thus, the sole question for determination in this reference is as to whether the electric motors fall within the exception of entry 17 of Schedule "A" appended to the Act, and thus liable to be taxed at the rate of 6 per cent being an electrical equipment required for generation, transmission and distribution. Entry 17 in Schedule "A" attached to the Act, is as follows: "(17) Electrical goods other than electrical plant, equipment and their accessories including service meters required for generation, transmission and distribution." It is not disputed that if....
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....ric motor was an equipment required for generation, transmission and distribution of electric energy. We find no substance in this submission. In that case, their Lordships were considering as to whether the "super-enamelled copper wire" was an accessory to the electrical plant and equipment or not. The finding was recorded on the statement of Dr. B. Thapar, Head of Electrical Department, Engineering College, Chandigarh, who was expert in that line. He stated "the super-enamelled copper wire is not used for generation, transmission or distribution of energy. It is also not an electric plant or equipment but it is certainly used for making equipment required for generation. In that sense it can be said to be an accessory to the electric plan....
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.... reading of entry 17 shows that electric goods with certain exceptions are to be treated as goods liable to the levy of 10 per cent sales tax. Exception is made in respect of the electric plant and equipment and their accessories for generation, transmission and distribution. The goods sold by the dealer do not generate "electricity". These are also not used for transmission or distribution of electricity. It is thus clear that electric motor cannot be included in the exception to entry 17. The main purpose of an electric motor in fact is consumption or utilisation of electric energy and converting the same into kinetic (mechanical) energy for motion. Counsel for the dealer invited our attention to office memo No. 3335-ST.1 dated Decembe....
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....Sales Tax which provided as under: "Government have decided to levy sales tax on electric motors and starters prior to February 21, 1973, at the rate of 6 per cent or at the rate which the dealers have charged from their customers whichever is higher. You are directed to make the assessments accordingly and also bring these instructions to the notice of the Assessing Authorities working under you for strict compliance. Spare copies of this communication for distribution amongst the Assessing Authorities are enclosed." On the basis of this memo, counsel for the dealer argued that Government itself decided to levy sales tax on electric motors at the rate of 6 per cent or at the rate which the dealers charged from their customers whichev....