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Commissioner of Sales Tax Vs. Gulmohar Industries - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtAllahabad High Court
Decided On
Case Number S.T.R. No. 929 of 1978
Judge
Reported in[1980]46STC122(All)
AppellantCommissioner of Sales Tax
RespondentGulmohar Industries
Appellant Advocate The Standing Counsel
Respondent Advocate Bharatji Agarwal, Adv.
DispositionPetition dismissed
Excerpt:
- .....poles supplied to the electricity department of government or electricity board are accessories of electrical equipments and plants required for generation, distribution and transmission of electrical energy and covered by serial no. 7a of notification no. 7096/x-1012-1965 dated 1st october, 1965 ?(2) if the answer to the above question is in the affirmative, then whether the learned additional judge (revisions) was justified to hold that concrete poles are unclassified items ?2. as law has been amended the reference is converted and decided as revision under section 11 of the amended act. there is no dispute on facts that the assessee sold concrete poles and cement, etc., to the electricity board. the question is whether the sale of poles was taxable under entry 7a of notification no......
Judgment:

R.M. Sahai, J.

1. The following questions of law were referred for the opinion of this Court :

(1) Whether concrete poles supplied to the electricity department of Government or Electricity Board are accessories of electrical equipments and plants required for generation, distribution and transmission of electrical energy and covered by serial No. 7A of Notification No. 7096/X-1012-1965 dated 1st October, 1965 ?

(2) If the answer to the above question is in the affirmative, then whether the learned Additional Judge (Revisions) was justified to hold that concrete poles are unclassified items ?

2. As law has been amended the reference is converted and decided as revision under Section 11 of the amended Act. There is no dispute on facts that the assessee sold concrete poles and cement, etc., to the Electricity Board. The question is whether the sale of poles was taxable under entry 7A of Notification No. 7096/X-1012 dated 1st October, 1965. The entry reads as under :

--------------------------------------------------------------------------------S. Name of goods Circumstances under Point of Rate ofNo. which to be taxed tax tax--------------------------------------------------------------------------------7A Electrical equipment, plants (a) If imported from Sale by 7 paiseand their accessories requir- outside U.P. importer. pered for generation, distribu- rupee, tion and transmission of (b) If manufactured Sale by do.electrical energy. in U.P. manufac-turer.--------------------------------------------------------------------------------

3. It is obvious that poles are not covered in the first part of the entry as they are neither electrical equipment nor plants. The question is whether they could be treated as accessories. The word 'accessory' has been interpreted to mean an item that is not essential but adds to convenience or effectiveness. Can it be said that these poles are used for convenient handling of electrical equipment or plants It is obvious, even the standing counsel does not contest, that poles sold by the assessee cannot be considered to be for convenient handling of electrical equipment or plants. What is urged by him is that it is accessory to electricity generated by plants as electric wire cannot be run without fixing poles and, therefore, they should be treated as accessory of electrical plant or equipment. The argument is devoid of any merit. Poles might be needed for running electricity but by that they do not become accessory of electrical plant or equipment.

4. In the result, this revision fails and is dismissed. The question of law raised by the Commissioner of Sales Tax is decided by saying that cement poles supplied by the assessee were not covered under entry 7A of Notification No. 7096 dated 1st October, 1965. The assessee shall be entitled to its cost, which is assessed at Rs. 200. The fee of the standing counsel is assessed at Rs. 100.


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