TaxTMI 
TaxTMI 
2021 (11) TMI 459
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....ovisions of U.P. Trade Tax Act, until and unless Electronic goods are Classified separately, hence the electronic equipment can not be treated as machinery for entry Tax purposes? III Whether the taxing authority, Appellate Authority as well as the Tribunal have failed to appreciate the question of fact and law? Learned counsel for the revisionist submits that the applicant is a Department of Telecommunication and a Government Undertaking under the Central Government. Hence, levy of entry tax on the machinery, imported for use of installation of electronic exchange for providing telephone services to the public at large, cannot imposed treating it to be machinery, as prescribed under the U.P. Tax on Entry of Goods Act and prays that levy of entry tax be quashed. The Court has perused the records. Admittedly, the revisionist had imported various electronic machinery, the value of which was more than Rs. 10 lacs, were used in the installation of electronic exchange for providing telephone services. The issue is not res integra. This Court, on various occasions, has come to the conclusion that inter - parties have decided the issue against the applicant and in fav....
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....arlier, a machine, used to be said to be a "tool containing one or more parts that uses energy to perform an intended action". Usually in its nascent stage the "machines" were powered by mechanical, chemical, thermal, or electrical means, and are often motorized. But with the advent of electronic digital technology, it has led to the development of power tools without moving parts. In the "American Heritage Dictionary", Second College Edition, published by Haughton Mifflin Co., 1985, the equipments using electronic technology are also considered as "machines". 10. In ancient India, the concept of machines though as such is not penned down, but used to be understood and practiced by common people, using simple techniques like taking water from Well with the help of animal like Buffalo or Ox (called Rahet) and so on. Similarly, wheels of bullock cart constitute a simple machine making movement convenient and simple. In Roman civilization, the idea of simple machine is said to have originated by Greek Philosopher, Archemedes, around 3rd century BC, who studied simple machines, i.e., lever, pulley, and screw. The Greek's understanding was probably limited to the statics of....
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....to the extent of having molecular machine, which is a concept designed in bio-technology. The present day Scientist and Researchers term these machines and equipments as part of "nano-technology". 14. The term "machinery", as has already said, includes something more than "machines" and in general it can be said to include: (i) Machines of a particular kind or machines in general; (ii) The working parts of machine; and, (iii) The means or system by which something is kept in action or a desired result is obtained. 15. The above discussion leaves no manner of doubt that in totality the instruments referred to above imported by assessee, in one or the manner, constitute and satisfy the term "machinery" and its parts (including spare parts) and, therefore, the view taken by authorities below cannot be said to be erroneous. 16. Even otherwise, I find support in taking above view from certain authorities where the term "machinery" has been considered and explained. In the context of fiscal statute, the term "machinery" has come up for consideration by various Courts time and again. It would be useful to have a glance over some of suc....
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....ships said that there was great danger in attempting to give a definition of the word "machinery" which would be applicable in all cases and it may be impossible to succeed in such an attempt. However, they observed that the word "machinery" when used in the ordinary language prima facie, means some mechanical contrivances which by themselves or in combination with one or more other mechanical contrivances by the combined movement and interdependent operation of their respective parts generate power, or evoke, modify, apply or direct natural forces with the object in each case of effecting so definite and specific a result. 21. In the context of Income Tax Act, 1922 a question had arisen whether a new diesel engine or petrol engine used in automobiles can be said to be a machinery or it is only a part of equipment or machine. The Apex Court considered it in Commissioner of Income Tax, Madras Vs. Mir Mohammad Ali, AIR 1964 SC 1693 and held that a diesel engine itself is a machinery. It relied on the earlier decision of Privy Council in Corporation of Calcutta Vs. Chairman of the Cossipore and Chitpore Municipality (supra). 22. In K.B. Dani Vs. State of Karnataka, 1....
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....to move in the designed manner. Thus, the tailoring machine answers the description of a machine. The work of stitching is done by the machine with great speed and uniformity. Doing similar work and with that speed is impossible by human physical power. So also a typewriter, which works in a systematic manner on pressing the keys of the keyboard by the fingers in the required manner which work cannot be performed by human physical power. But, take the case of scissors, though on the application of force at one end, the two blades of it move and can cut certain articles, it has no attributes of a machines. Force is not multiplied for doing any work. There is no organisation of the several parts into one unit, all functioning simultaneously on the supply of power at a given point. No intelligent person considers it a machine. The scissors therefore could be considered as an implement and no a machinery. A wheelbarrow used to remove any debris or mud, etc., is likewise in common parlance not considered as a machinery. Similarly, take the case of hand-pulled cart. By applying or supplying power it does not work as a combined effect of the movement of its parts as in the case of tailori....
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.... the ode or the manner in which the power is applied makes no difference in these specific cases, it should make no difference either if the source of power is either human or animal." 27. Looking to the above explanation and interpretation with reference to "machinery" I find that, how an individual or a party understand the thing or a commodity by itself would not be decisive in holding a particular commodity to belong to a particular category. It depends upon various relevant aspects. The general consensus in the context of "machinery" is that it is a device used for a particular purpose or result which takes energy in any form but results in combined functioning to achieve the work which otherwise may not be possible by human physical efforts or power, i.e., without help of such devices. The supply of power could be either by natural forces or human or animal energy or electronic energy or any other type of energy. The mere fact that such a device is considered to be an "electronic equipment" would not make any difference for the reason that the term "electronic" means that it is operated by flow of electrons. The term "electron" has been defined as a stable elementary....