1999 (5) TMI 587

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....ts from Switzerland such as "guide for printed circuit board, transistor, diodes and integrated circuits". From these component parts the assessing authority came to the conclusion that the end-product manufactured by the assessee must be an "electronic system" falling under entry 41-C of the First Schedule taxable at 12 per cent. The assessing authority also refers to the bill describing the component part as "consisting of electronic unit". In the leaflet issued by the assessee the product is described as "the fully electronic premier card control and system". 2.. Before the first appellate authority (Appellate Assistant Commissioner), the assessee contended as follows: that in regard to the turnover of Rs. 26,96,576 they would like to b....

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....control was fitted to carding machine used in the textile industry, that this part may contain certain electronic item, that for that reason this will not lose the character of machinery part fitted to a carding machine or winder, which does the job of removing the faults to the yarn at the time of winding and gives a good quality of yarn and that therefore the assessment at 12 per cent on the turnover of Rs. 26,96,576 may be set aside and that this turnover ordered to be assessed at 8 per cent. After referring to the two entries in the First Schedule, the Appellate Assistant Commissioner gives the following reasons for reversing the order of the assessing authority: (1) Entry 81 says "all machinery other than those specifically mentione....

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....se specified elsewhere in this Schedule), but including electronic cash registering, indexing, card punching, franking and addressing machines, computers of analog and digital varieties, one-record units and other electronic goods and parts and accessories of all such goods." Entry 81 of the First Schedule is as follows: "All machinery (other than those specifically mentioned in this Schedule) worked by (i) electricity, (ii) diesel or petrol, (iii) furnace oil, (iv) kerosene, (v) coal including charcoal or (vi) any other form of fuel or power, and parts and accessories of such machinery and tools used with such machinery." Entry 41-C relates to electronic system or other apparatus including parts and accessories of such goods. Therefore,....