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2009 (2) TMI 785 - HC - VAT and Sales TaxWhether the cooler pump, a component of an air-cooler can be termed as an electrical appliance and attract tax at the first stage of sale under section 18 read with entry 16? Whether the cooler pump is monoblock pump and is excluded from the levy of tax at the first stage of sale under entry 16? Whether interest under section 25(5) is justified even when the honourable Supreme Court in a judgment dated May 13, 1994 in the case of Frick India Limited v. State of Haryana read with judgment reported as [1994] 95 STC 188 has held that in these circumstances the interest under section 25(5) is not leviable? Held that:- When the facts of the present case are examined in the light of the principle laid down in Rajindra Electric Store's case [1996 (1) TMI 393 - PATNA HIGH COURT] no doubt is left that a cooler pump in itself cannot be of any use and it is incapable of cooling the air in the absence of air-cooler/desert cooler fitted with various other items. If the cooler pump independent of any other item is capable of rendering service to the buyer then it might be regarded as an electrical appliance which indeed is not the situation. Therefore, we are of the view that the first question of law deserves to be answered in favour of the dealer and against the Revenue. As far as second question is concerned, it is also bound to be answered in favour of the dealer and against the Revenue because mono-block pumps are entirely different as has been conceded by the learned counsel for the parties. The third question regarding payment of interest would not arise once the first question has been answered in favour of the dealer because if the dealer is not liable to pay any tax at the first stage of sale under section 18 of the Act read with entry 16 then the question of payment of interest under section 25(5) of the Act would not arise.
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