2012 (11) TMI 1042 - HC - VAT and Sales Tax

Veena tamboora shruthi box and tabala - whether the above instruments are Indian musical instruments and not electronic instruments? - Held that - Veena and Tamboora have the shape and appearance of traditional Veena and Tamboora but in size they differ besides having electronic gadgets like speaker amplifier and a mike for the sound quality and efficiency. It is the unanimous opinion of the popular and renowned musicians who assisted the Court say that the skills for playing said instruments manufactured by the assesse is totally similar to the skills required for playing the traditional Veena and Tamboora. Merely because the said instruments are fitted with mike amplifier and speaker they do not lose the character of Indian musical instruments. Therefore the said two instruments definitely come within the purview of Article 15(1) and accordingly they have to be taxed. With regard to Shruthi box and Tabala, although they do not bear the appearance and shape of Tabala and traditional Shruthi box but they play the music of traditional Tabala and Shruthi box.It is said that Shruthi box and Tabala manufactured by the assessee are very much necessary for the beginners who practice in music. In fact these instruments would play a tune for the practicing vocalist. Therefore in order to propagate the object of Entry 15(i) of the Second Schedule of the Karnataka Sales Tax Act 1957 to promote Indian music and Indian musical instruments it is just and necessary to hold that all the instruments come under the definition within the purview of Entry 15(i) and should be taxed. Accordingly the revision is dismissed.

Summary

Issues:
1. Classification of musical instruments for taxation under Karnataka Sales Tax Act, 1957 as Indian musical instruments or electronic goods.

Detailed Analysis:
1. The respondent-assessee, a manufacturer of Indian musical instruments like veena, tamboora, shruthi box, and tabala, argued that the instruments should attract a lower tax rate of four percent as per Schedule II, item No. 15(1) of the Karnataka Sales Tax Act, 1957. The Department contended that the instruments were electronic and should be taxed accordingly under item No. 15(i) of Schedule II, Part M of the Act. The assessing officer initially classified the instruments as Indian musical instruments but later reconsidered. The Joint Commissioner held that the instruments were electronic and not eligible for concessional tax treatment.

2. The Tribunal ruled in favor of the assessee, considering the instruments as Indian musical instruments. The Department challenged this decision through a revision. The court allowed music experts to provide their opinions. The experts highlighted that the instruments had electronic components enhancing sound quality and convenience for musicians in practice. They emphasized that the instruments aided beginners in music practice by eliminating the need for additional players like harmonium and tabala, thus promoting self-sufficiency in practice.

3. The court analyzed the relevant tax entries under the Karnataka Sales Tax Act. It noted that while the instruments had electronic features like pre-recorded music chips, their primary function remained playing traditional Indian musical tunes. The court emphasized that the instruments' shape and appearance, though modernized, did not detract from their essential nature as Indian musical instruments. The court emphasized the importance of these instruments for beginners in music practice and their role in preserving and promoting Indian musical traditions.

4. Ultimately, the court dismissed the revision, upholding the classification of the instruments as Indian musical instruments eligible for the lower tax rate. The judgment emphasized the instruments' role in facilitating music practice, preserving traditional tunes, and supporting beginners in learning music. The decision aimed to promote Indian music and musical instruments by recognizing the instruments' functional alignment with traditional Indian musical practices, despite modern enhancements and electronic components.