TaxTMI 
TaxTMI 
2001 (1) TMI 87
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....oods" so as to attract a lower rate of sales tax. 3.The undisputed facts are that the appellants are manufacturers and dealers in televisions, audios, washing machines etc. and are registered dealers with the Sales Tax Department at Hyderabad. Though the appellants deal in both Semi and Fully Automatic Washing Machines, the present controversy is only with regard to Fully Automatic Washing Machines. 4.Prior to 20th July, 1988, the rate of sales tax leviable on the sale of Automatic Washing Machine was 10 per cent. On 20th July, 1988, by a notification issued in exercise of power contained in Section 9 of the Andhra Pradesh General Sales Tax Act, 1957, the rate of tax payable on the sale of 'electronic goods' as defined in the said notific....
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....ork of washing the clothes, after the same were loaded into the machine, was carried out automatically, the machines being controlled and operated by micro processor technology. 7.Without accepting the contention of the appellants, the provisional assessment order for the period 1st April, 1994 to 31st March, 1995 was passed raising a demand of Rs. 8,83,143/- as differential tax. For subsequent period also tax was demanded, but it is not necessary to go into any further details in respect thereof. 8.The appellants filed appeals before the Appellate Assistant Commissioner but without success. The Sales Tax Appellate Tribunal, on a further appeal being filed by the appellants, also came to the conclusion that the Automatic Washing Machines ....
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....c appliances or equipments operating on electronic principle. 11.Mr. Kapil Sibal, the learned Senior Counsel appearing for the appellants contended that it should be so regarded. Mr. M.N. Rao, the learned Senior Counsel submitted that in addition thereto, the automatic washing machine was in any case an item which should be regarded as consumer electronics and therefore would be entitled to the benefit of the said notification. 12.The key words to our mind which appear in the said definition contained in the notification are "operating on electronic principles". In the Concise Oxford Dictionary, Tenth Edition, "electronic" has been inter alia defined as "having components such as microchips and transistors that control and direct electron....
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....trolled in the working of the machines are that of (a) wash cycle, (b) rinse cycle and (c) spin/dry. It has been certified by the Indian Institute of Technology in the present case that the Automatic Washing Machine of the appellants has the facility of water level control delay program. It has various programs which are controlled through micro processor chips. In other words, what the said notification requires is that an item can be regarded as an electronic goods if its all functions which are required to be performed by that equipment or appliance are performed or controlled electronically by micro processor. Admittedly, in the present case the entire functioning of the washing machine is automatic. Data is fed into the machine and ....