TaxTMI 
TaxTMI 
2017 (2) TMI 521
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.... (i) Whether the Hon'ble Tribunal has erred in law and in facts in holding that NEBULA Watch is falling under Entry 13(ii) of the Act? [2.0] The facts leading to the present Appeal in a nutshell are as under; [2.1] The learned Joint Commissioner of Commercial Tax, Legal, Gujarat State, Ahmedabad passed the determination order dated 12/10/2011 holding that the goods in question i.e. 'NEBULA Jewellery Watch' fall under Entry 87 of Second Schedule to the Act and the respondent - assessee is liable to pay tax at the rate of 12.5% from 01/04/2008 onwards and is also liable to pay additional tax of 2.5%. Feeling aggrieved and dissatisfied with the aforesaid determination order dated 12/10/2011 passed by the learned Joint Commissioner of Commercial Tax, the respondent - original appellant preferred Appeal before the learned tribunal. [2.2] It was the case on behalf of the assessee / dealer that the assessee is manufacturing Electronic Watches, Jewellery Watches (NEBULA brand), Jewellery (Tanishq brand), Spectacles (sun glasses /goggles - Fastrack Brand) at his various factories in India. It was the case on behalf of the assessee /dealer that the NEBULA Jewellery Watch is made of gol....
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....efund on the basis of the said decision, more particularly, with respect to the past transactions. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned tribunal, revenue has preferred the present Appeal to consider the following proposed question of law; (ii) Whether the Hon'ble Tribunal has erred in law and in facts in holding that NEBULA Watch is falling under Entry 13(ii) of the Act? [3.0] Ms. Maithili Mehta, learned AGP appearing on behalf of the State has vehemently submitted that in the facts and circumstances of the case, the learned tribunal has materially erred in holding NEBULA Watch as jewellery and thereby has materially erred in holding that the same shall fall under Entry No.13(ii) of Schedule II of the Act. It is submitted that the learned tribunal has not properly appreciated the fact that ultimately the NEBULA Watch is a watch, which carries mechanism of watch, and therefore, the same would fall under the residuary Entry No.87, as for watch there is no specific Entry. It is further submitted by Ms. Maithili Mehta, learned AGP appearing on behalf of the State that even otherwise consider Entry No.13(ii) of Schedule II of ....
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....it may be treated as "Article or Jewellery" as the same is made of gold and /or silver and /or other precious metals and /or precious stones, and therefore, the same shall fall under Entry 13(ii) of Schedule II of the Act. [4.1] It is further submitted by Shri Tanvish Bhatt, learned advocate appearing on behalf of the respondent - assessee that merely because the NEBULA Watch is having the mechanism of watch, considering the fact that predominantly it is a jewellery in which 18 Karat gold and other precious metals /diamonds are used and the value of gold /precious metals /diamonds /stones remains 90% to 95%, the same shall not lose the characteristic of jewellery as per Entry No.13(ii) of Schedule II of the Act. [4.2] Shri Tanvish Bhatt, learned advocate appearing on behalf of the respondent - assessee has also heavily relied upon the meaning of "Jewellery" in Law Lexicon Dictionary. It is submitted that any item in which gold or silver or precious metals or precious stones is used predominantly may be a watch, dress, goggles, hairpins etc. can be said to be a jewellery. It is further submitted that the word "Jewellery" contained in Entry No.13(ii) of Schedule II of the Act is re....
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.... and /or precious metal and /or precious stone is predominant and the value of gold remains at almost 90% to 95% whereas the value of watch, is hardly more than 2% to 5%. Thus, when it is manufactured as a jewellery watch rather than simple watch, the value of watch is approximately Rs. 3 lakh per piece. Though, the jewellery watch is not defined under the Act, however, as per Entry No.13(ii) of Schedule II of the Act, Articles or Jewellery made of gold or silver or both or of other precious metals (studded or not studded with precious stones or pearls whether real, artificial or cultured), shall fall under Entry No.13(ii) of Schedule II of the Act. In the present case, NEBULA Watch, which is predominantly a jewellery, is made of gold, precious metals and /or precious stones /diamonds and is made of 18 Karat gold. Under the circumstances, the same can be said to be an "Article or Jewellery" falling within Entry No.13(ii) of Schedule II of the Act. [5.2] Even in the literature or advertisement on the net it is titled as NEBULA 18K Solid Gold Watches by TITAN. It is stated that each watch is inspired from stories that pay tribute to India's heritage and royal art and each watch is c....