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2022 (8) TMI 771
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....tioner had claimed the benefit of Notification No. II (1)/CT&RE/38/76 dated 11.02.1976 (in short 'Notification'), that provides for a concessional rate of tax to be levied upon the turnover from sale of scientific equipments and instruments to educational institutions, hospitals, laboratories and institutions, premised upon the satisfaction of certain conditions. 2. The returns filed by the petitioner were taken up for assessment and assessment orders have been passed on 30.05.2019 accepting the claim of the petitioner. This order does not contain any specific discussion in regard to the appropriateness or otherwise of the claim but merely accepts returns of the petitioner and the computation of tax contained therein. 3. Notices were ....
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....n: In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), the governor of Tamil Nadu having been satisfied that it is necessary so to do in the public interest hereby directs that in respect of scientific equipments and instruments (hereinafter referred to as "the said goods") the tax payable under the said Act by any dealer having his place of business in the State of Tamil Nadu, in respect of the sale by him from such place of business of the said goods in the course of inter-State trade or commerce to an educational institution for use in the teaching of science, or to a hospital for its use, or to a laboratory or institution which carries on any research ....
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....us, one condition of the Notification has, admittedly, been complied with. The dispute arises with regard to the second condition, that is, as to whether the goods supplied,being a lathe, drillingand hopping machines,satisfy the definition of 'scientific equipment and instruments' that form the thrust of the Notification. 9. The petitioner in this regard would rely on a decision of the Zenith Computers Vs. State of Maharasthra[(1996) 101 STR 242], wherein the question that fell for consideration was as to whether the computers sold by that assessee would be entitled to the benefit of the Notification. In conclusion, the Division Bench held that the expression 'scientific equipment and instruments' is one of wide import, and that ....
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.... proceedings have been framed on 22.05.2018 accepting the entitlement of the petitioner to the claim for exemption. 14. Per contra, learned Government Advocate would point to the clear description of the goods in question stating that a lathe, drilling machine and hopping machine would not, under any stretch of imagination, come under the cover of the description, 'scientific equipment and instruments'. 15. In this context they rely upon a decision of this Court in the case of Jaya and Company Vs. State of Tamil Nadu, [MANU/TN/0336/1991]. In that matter the assessees were dealers in steam boilers and the question that arose for decision was as to whether steam boiler would satisfy the definition of 'scientific equipment and instrument....
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....iences" indicate that the equipment should be relatable to the application of natural science. Thus, looked from any angle, we are not satisfied that steam boilers can be brought within the meaning of "scientific equipment or instrument" and given the concessional rate of 5 per cent. 17. I am of the considered view that this decision is of no assistance to the respondents. In that case, of Jaya and Company (supra), the steam boilers do not appear to have been used for any educational purpose. It was in that context that the Bench had observed that a boiler served a dual purpose, not just a scientific instrument, but a common household item as well. It was never the case of the assessee therein that it was used for the purposes of educati....