TaxTMI 
TaxTMI 
2021 (11) TMI 459
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....oods 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 favour of the Revenue. This Court, on identical set of facts, in Trade Tax Revi....
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....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 simple machines, the balance of forces, and did not include dynamics. It is claimed that Italian Scientist Galileo Galilei in 1600, e....
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.... 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 such authorities. 17. In Nutley and Finn, In re (1891) W.N. 61, Kekewich, J. held that speaking generally machinery included everything which by its action produced or assisted in production. 18. ....
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....rdinary 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, 1979(44) STC 276 (Karnataka) a question arose whether Tractor Trailer is a machinery or necessary of a machinery for the purpose of levy of tax under the Karnataka Sales Tax Act, 1957. It also relied on Corporation of Calcutta Vs. Chairman of the Cossipore and Chitpore Munic....
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....essing 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 tailoring machine or typewriter. When pulled all that happens is it moves along with with the puller and stops when the stops. The tractor-trailer, just as a hand-pulled cart, moves when attached to a tractor and dragged by it and it stops when not dragged. The tractor-trailer is a mere receptacle made to contain specific....
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....modity 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 particle with an indivisible charge of negative electricity, found in all atoms and acting as a carrier in solids. In common parlance the term "electronic" is applied to a system or appliance which is operated by a flow of electron. In McGraw-Hill, Dictionary of Scientific and Technical Terms (Second edition), the term "electronic" has been defined....