1980 (3) TMI 246 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment u/s Kerala General Sales Tax Act for the year 1974-75, inclusion of "postages collected" in taxable turnover, rate of tax for polythene pipes, classification of machineries as "electrical goods" u/s First Schedule.

Assessment of "postages collected": The Tribunal held that charges for postage collected by the assessee were not part of the sale consideration and should be excluded from the taxable turnover. The Tribunal reasoned that these charges were for delivery and not part of the sale price, aligning with a previous Division Bench judgment. The Court rejected the argument that postal charges should be included in the turnover, affirming the Tribunal's decision.

Tax rate for polythene pipes: The Court considered the entry "water supply and sanitary fittings" for polythene pipes. Without evidence that the pipes were intended for specific sanitary use, the Court upheld the Tribunal's decision that the pipes did not fall within the scope of the higher tax rate under entry 26A of the First Schedule.

Classification of machineries as "electrical goods": The Court applied the definition of "electrical goods" as items exclusively dependent on electrical energy for operation. Following precedents, the Court determined that machineries like pumpsets, grinders, and lathes, even when sold with electrical motors, did not inherently qualify as electrical goods. The Tribunal's decision that these items did not fall under entry 26 of the First Schedule was upheld.

Conclusion: The Court dismissed the tax revision cases, upholding the Tribunal's decisions on all issues. The State's request for certificates to appeal to the Supreme Court was declined, as the cases did not involve substantial questions of law warranting Supreme Court intervention.