TaxTMI 
TaxTMI 
2011 (3) TMI 1515
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.... were assessable under entry 41C of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959. They were to be assessed at concessional rate as per the notification effected in G.O.P. No. 253/ CT & RE dated March 17, 1986. The assessee contended that the gramophone records sold by the assessee were specifically designed for being played on electronic goods only. Hence, the benefit of the concessional levy as per the Government Order was available to the assessee. Originally the assessing officer accepted the stand of the petitioner and assessed at the tax rate of 10 per cent for 1986-87, 1987-88 and 1988-89, two per cent for 1989-90, three per cent for 1990-91 and 1991-92, under the Tamil Nadu General Sales Tax Act. The Central sales tax assessments were also completed accepting the petitioner's case. It is further stated that the Commissioner of Commercial Taxes had also issued a clarification on April 28, 1986 that gramophone records were classified as electronic goods. However, the assessing officer revised the assessment and treated gramophone as one falling under entry 9 of the First Schedule to the Tamil Nadu General Sales Tax Act and hence, levied tax at 15 per ce....
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....of tax in respect of electronic goods from 10 per cent to two per cent, which was subsequently cancelled under the notification in G.O.P. No. 155 in No. II (1)/CTRE/52(c)/90 dated March 17, 1990. However, subsequent thereto, in G.O.P. No. 155, No.II (1)/CTRE/ 52(f)/90 dated March 17, 1990, followed by G.O.P. No. 187 dated March 30, 1990, the Government once again introduced concessional rate of tax and reduced the tax to the rate of three per cent with effect from March 17, 1990. The learned counsel for the assessee would submit that going by the entries therein, particularly under entry 41C of the First Schedule to the Tamil Nadu General Sales Tax Act and having regard to the nature of functioning of the L. P records, the product sold by the assessee rightly did not fall under entry 9 of the First Schedule. But as electronic goods, they are entitled to the concessional levy. He further pointed out that having regard to the fact that L.P. players can be played only in electronically operated system and could never be used on system working normally in mechanical operation, the question of bringing the same under entry 9 does not arise. Having regard to the considered order of th....
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....at 15 per cent. Entry 41C is a specific entry to include the specific electronic goods and the other electronic goods and parts and accessories of all such goods. When the entries thus speak about the parts and accessories of electronic goods, the notifications, granting concessional levy on electronic goods, in particular notification G.O.P. No. 253 dated March 17, 1986, touched on the sale of electronic goods and "components" granting reduction in the rate of tax to six per cent when the goods are manufactured within the State and a reduction in the rate of tax to 10 per cent in respect of goods not manufactured in this State. This was modified and the concessional rate was fixed at four per cent under G.O.P. No. 291, CT and RE dated March 20, 1987 followed by a further reduction to two per cent under G. O. P. No. 724 dated May 9, 1988. Again the rate was fixed at four per cent under G.O.P. No. 155 dated March 17, 1990 and again reduced to three per cent with effect from March 17, 1990 under G.O.P. No. 187 dated March 30, 1990 in respect of electronic goods and components in the categories falling under any of the entries in the First Schedule to the said Act except those falling....
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....gards the meaning of "electronic", we do not find that the dictionary meaning would give any assistance to the assessee as regards the issue to fall under electronic item. On going through the entries under the Schedule, we are convinced that the disc, as such, sold by the petitioner, did not qualify as an electronic item to fall under entry 41C. The assessee also does not rest its claim that it is an electronic item nor is the assessee able to point out that L.P. recorder could operate only with the disc manufactured by the assessee. Hence, it is difficult for this court to accept the discs as parts or accessories of the L.P. Hence, the question thus arises is as to which entry the disc sold by the petitioner would fall at the relevant period. As already pointed out, the revisional authority proceeds on the footing that items sold by the assessee do not fall under entry 41C. Except for a mere statement as referred to above, the Joint Commissioner gives no other reason to bring "disc" to fall under entry 9 so as to confirm the view of the assessing authority. There are no materials to point out that the disc sold by the assessee is capable of being used only in gramophone as giv....