TMI Blog2010 (8) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... - - Dated:- 11-8-2010 - D.K. Jam and H.L. Dattu, JJ. REPRESENTED BY: S/Shri Aarohi Bhalla, Gunnam Venkateswara Rao, S.K. Dwivedi, Manoj Kumar Dwivedi, Ms. Vandana Mishra, Ashutosh and Subodh S. Path, Advocates, for the Appellant. S/Shri Dhruv Agarwal, Sr. Advocate and Parveen Kumar, Advocate, for the Respondent. [Judgment per: H.L. Dattu, J.]. - The question for determination in these Civil Appeals is whether the `Voltage Stabilizer' manufactured and sold by the assessee (respondent herein) ought to be taxed as electrical goods under Entry No. 16 of Schedule to U.P. Trade Tax Act, 1948 or as electronic goods under Entry No. 74(f) of the Notification No.1223 dated 31st March, 1992? 2. The Revenue contends that the voltage stabilizer is an `electrical goods'. The stand of the assessee is it is `electronic goods'. 3. The facts and the issues in all these civil appeals are identical and, therefore, these are all disposed of by this common judgment. 4. The Respondant/Assessee is in the business of manufacture of voltage stabilizer and sales thereof. The assessing Officer had passed Assessment Order dated March 31, 1997 under Section 41(8) of the U.P Trade Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial Taxes, passed under Section 35 of U.P Trade Tax Act does not give out any reason as to why the automatic voltage stabilizer should be treated as electrical goods and not as electronic goods and, therefore, the reliance placed on the order passed by the Commissioner would not come to the aid of the revenue. Accordingly, the High Court dismissed the Revision Petition. That is how the revenue is before us in these appeals. 8. The learned counsel Sri Aarohi Bhalla would submit that, the commodity in question is electrical goods since it works on the principles of application of electric energy and also facilitates the distribution and transmission of electrical energy and therefore, it satisfies the twin tests that are required under Entry 16 of Schedule to the Act. It is further submitted, that for the goods to be classified as electronic goods, their functioning or operation must be controlled and guided by Micro Processing Chips. According to learned counsel, the voltage stabilizers function as step up or step down transformers and their working is not controlled by Micro Processing and, therefore, they are outside the ambit of electronic goods. It is also submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive components/resisters, capacitors, diodes and other active components, transistors, integrated circuits, large scale integration/very large scale integration chips, black and white picture tubes, colour picture tubes, power semi conductors, audio tapes and video tapes, printed circuit boards/connectors, relays, upto electronic components, magnetic media, microwave tube, television components, television glass shell, electronic transducers, actuators, display devices that is light emitting diodes/liquid crystal diode, micro meters for video cassette records/video cassette players, crystals, tape deck mechanism, etched and framed foils, electronic tubes, deflection yokes, line out put transformers, electro deposited copper foils printed circuit board laminate, populated printed circuit boards, power supply devices, cabinet. (f) All other electronic goods, parts and accessories not covered in any of the aforementioned categories." 11. Entry 16 of the Schedule to U.P. Trade Tax Act is an inclusive definition. It speaks of all electrical goods, instruments, apparatus etc., the use of which cannot be had without the application of electrical energy, including plant and their ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hold its terminal voltage to that specified voltage. Hence, the shunt regulator can be viewed as the limited power parallel stabilizer. The shunt regulator output is used as a voltage reference. A Zener diode is a type of diode that permits current not only in the forward direction like a normal diode, but also in the reverse direction if the voltage is larger than the breakdown voltage known as "Zener knee voltage" or "Zener voltage". The device was named after Clarence Zener, who discovered this electrical property. An avalanche diode is a diode (usually made from silicon, but can be made from another semiconductor) that is designed to go through avalanche breakdown at a specified reverse bias voltage and conduct as a type of voltage reference. (see Wikipedia) 16. The voltage stabilizer is an instrument which can be used by application of electrical energy and not an instrument for generation, distribution or transmission of electrical energy, but are used for regulating the inflow of electrical energy for variety of appliances. Voltage stabilizers serve the purpose of producing a constant output voltage from a variable input voltage. As a rule, voltage stabilizers operate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and produces a mechanical force between the conductors. An ideal capacitor is characterized by a single constant value, capacitance, measured in farads. This is the ratio of the electric charge on each conductor to the potential difference between them. Capacitors are widely used in electronic circuits for blocking direct current while allowing alternating current to pass. 18. It is evident from the facts of the case that an automatic voltage stabilizer involves the operation of a number of electronic components. A voltage stabilizer might have many components some of which use electricity. This cannot be the sole reason for classifying it as an electrical good. As noticed earlier, an electrical device can be an electronic device, but an electronic device cannot be an electrical device. The Tribunal which is the last fact finding authority after taking into consideration the components of voltage stabilizer, the purpose for which it is used and the principles on which it works has come to the conclusion that the voltage stabilizer is electronic goods, for the purpose of taxation under U.P. Trade Tax Act, we are in agreement with the reasoning and conclusion reached by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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