Skip to content


Commissioner of Sales Tax, Maharashtra State, Bombay Vs. Concord Lighting (India) Pvt. Ltd. - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtMumbai High Court
Decided On
Case NumberSales Tax Reference No. 15 of 1979 in Reference Application No. 52 of 1975
Judge
Reported in[1985]156ITR54(Bom); [1985]59STC239(Bom)
Acts Bombay Sales Tax Act, 1959 - Sections 52 and 61
AppellantCommissioner of Sales Tax, Maharashtra State, Bombay
RespondentConcord Lighting (India) Pvt. Ltd.
Excerpt:
sales tax - taxability - sections 52 and 61 and entries 7a and 15 (1) of schedule e to bombay sales tax act, 1959 - whether lamps covered within scope of entry 15 (1) of schedule e or covered by entry 7a of schedule e - after considering entries in entry 7a it is clear that lamps expressly covered by entry 7a of schedule e and not by entry 15 (1) of schedule e. - - they can clearly be considered as components or parts of lamps. we fail to see the relevance of this decision to the question poses before us......under an invoice dated 30th july, 1973. this determination was sought under section 52 of the bombay sales tax act, 1959. the commissioner of sales tax held that the sales in question were liable to tax under entry 15(1) of schedule e to the bombay sales tax act, 1959 as then in force, and not under entry 7a of schedule e to the bombay sales tax act, 1959 as then in force.2. being aggrieved by the decision of the commissioner of sales tax the respondents filed a first appeal before the tribunal. the articles in question as also the literature pertaining to these articles were produced before the tribunal as also before the commissioner of sales tax. the tribunal came to the conclusion that the articles in question were lamp shades of a sophisticated kind designed for producing a.....
Judgment:

Smt. Sujata V. Manohar, J.

1. The respondents manufacture various types of lamp shades. They manufacture a kind of lamp shade called 'multigrove'. By an application dated 25th August, 1973 the respondents applied to the Commissioner of Sales Tax for determination of the correct rate of tax payable on the sales of multigrove surface silver (item No. 8301 in the catalogue) and multigrove V/D silver (item No. 8702 in the catalogue) which were effected under an invoice dated 30th July, 1973. This determination was sought under section 52 of the Bombay Sales Tax Act, 1959. The Commissioner of Sales Tax held that the sales in question were liable to tax under entry 15(1) of Schedule E to the Bombay Sales Tax Act, 1959 as then in force, and not under entry 7A of Schedule E to the Bombay Sales Tax Act, 1959 as then in force.

2. Being aggrieved by the decision of the Commissioner of Sales Tax the respondents filed a first appeal before the Tribunal. The articles in question as also the literature pertaining to these articles were produced before the Tribunal as also before the Commissioner of Sales Tax. The Tribunal came to the conclusion that the articles in question were lamp shades of a sophisticated kind designed for producing a concentrated beam of light to illuminate sculptures, wall textures and other such items or specific areas. The Tribunal came to the conclusion that the articles were classifiable under entry 7A of Schedule E to the Bombay Sales Tax Act, 1959 and not under entry 15(1) of Schedule E to the Bombay Sales Tax Act, 1959. From the decision of the Tribunal the following question has been referred to us for determination under section 61 of the Bombay Sales Tax Act, 1959.

Whether on the facts and in the circumstances of the case and on a true and proper interpretation of entry 15(1) of Schedule E to the Bombay Sales Tax Act, 1959 the Tribunal was justified in holding that the sales of multigrove surface silver and multigrove V/D silver effected by the respondents vide invoice No. 0083 dated 30th July, 1973 are not covered within the scope of entry 15(1) of Schedule E to the Act but covered by entry 7A of Schedule E to the Act ?

Entry 7A of Schedule E to the Bombay Sales Tax Act, 1959 at the relevant time was as follows :

SCHEDULE E----------------------------------------------------------------------Sr. Description of Rate of sales Rate of Rate of Period ofNo. goods tax in paise general purchase operationin the Rupee sales tax tax inin paise paise inin the the RupeeRupee----------------------------------------------------------------------1 2 3 4 5 6----------------------------------------------------------------------7A All kinds of Six Three Six 11.5.73stoves, pressure tolamps, incande- 30.6.81scent lanternsand lamps andcookers andcomponents,parts andaccessoriesthereofincluding gasmantles.* * * * *15. (1) Domestic electr- Eleven Three Eleven 11.5.73ical appliances toincluding elec- 30.6.81tric fans andcomponents,parts andaccessoriespertaining tosuch appliances(but excludingelectric bulbs).----------------------------------------------------------------------

Looking to these entries it is clear that lamps are expressly covered by entry 7A. It is therefore not necessary to examine at length whether lamps can also be considered as domestic electrical appliances or not. Even if they are covered by the general phrase 'domestic electrical appliances', they are expressly mentioned in entry 7A and hence must fall under that entry.

3. It was submitted by Mr. R. V. Desai, learned counsel for the applicants, that entry 7A does not cover any article which uses or runs on electricity. He submitted that the term 'lamps' in entry 7A must be so read as to exclude electric lamps. This submission cannot be accepted because there is nothing in the language of entry 7A which would warrant the exclusion of the items mentioned there if they run on or make use of electricity. If the argument of Mr. Desai is to be accepted, we will have to exclude electric stoves, incandescent lanterns which use electricity and electric cookers from entry 7A. There is no warrant for such exclusion.

4. The items which are the subject-matter of the present reference have been considered by the Tribunal as a sophisticated version of lamps shades designed to project a concentrated beam of light. They can clearly be considered as components or parts of lamps. Hence entry 7A which covers components, parts and accessories of lamps also covers these items.

5. It was submitted on behalf of the applicants that these items were domestic electric appliances. In connection with this submission Mr. Desai cited two decisions of the Gujarat High Court. The first is a decision in the case of Viswa & Co. v. State of Gujarat reported in [1966] 17 STC 581. In that case the entry in question was entry 52 of Schedule B to the Bombay Sales Tax Act at the relevant time which related to 'domestic electrical appliances other than torches, torch cells and filament lighting bulbs'. The Court held that electric fans were domestic electrical appliances within the meaning of that entry. It is difficult to see how this decision helps the applicants because the question in the present case is not whether the lamps or lamp shades or lamp fittings can be described as domestic electrical appliances or not. We have to consider whether they more appropriately fall under a specific entry which deals with lamps, viz., entry 7A. When there is an express entry which in terms covers lamps, its parts, components and accessories, lamps fittings and lamp shades would fall under the specific entry.

6. The other decision which was cited by the applicants was a decision in the case of Star Radio Electric Co. v. Commissioner of Sales Tax, Gujarat reported in [1971] 27 STC 367. The Gujarat High Court was asked to consider whether a fluorescent tube without a choke and a starter could be considered as a domestic electrical appliance or not. The Court held that in order to bring an article within the meaning of the word 'appliance' the article should be capable of rendering the desired service. Since a fluorescent tube could not function without a choke and a starter it could be considered as an appliance. We fail to see the relevance of this decision to the question poses before us.

7. The fittings is question, whether they are considered as lamp shades or lamp fittings, fall under entry 7A of Schedule E to the Bombay Sales Tax Act, 1959 as in force at the relevant time. In the premises the question is answered in the affirmative and in favour of the respondent.

8. The applicants will pay to the respondents costs of the reference.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //