TMI Blog1991 (9) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... nuary 19, 1990, considered the scope of this entry and held that sewing machines do not fit into the concept of definition of 'industrial machinery" under entry 7, and therefore not exigible to tax under the Act. It is under these circumstances the present appeals have come to be preferred. 3.. The contention of the Revenue which is the appellant before us is, if the sewing machines could be used in garment factory undoubtedly it is an industrial machinery and therefore the learned single Judge ought to have had regard for the user. Merely because a sewing machine could be used domestically it does not cease to partake the character of industrial machinery. From this point of view the judgment of the learned Judge cannot be supported in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds we would do well to provide the legal background. The Act was brought into force with effect from October 1, 1980. As the preamble of the Act itself makes it very clear, it is an Act to provide for levy of tax on entry of goods into local area for consumption, use or sale therein. The charging section of the Act is section 3. Under sub-section (1) it says as follows: "3(1). There shall be levied and collected a tax on entry of the scheduled goods into a local area for consumption, use or sale therein at such rate not exceeding two per cent ad valorem......." Therefore it would be very clear that the levy or collection of tax is on the entry of the scheduled goods. As to what are "scheduled goods" can be gathered from section 2(7). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of roads), fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property." In the light of this background it is necessary for us to analyse whether entry tax could be levied on sewing machines bringing them under entry 7, viz., industrial machinery and parts and accessories thereof. The argument on behalf of the Revenue is, if sewing machines could be used in a garment factory that user is determinative of the fact. We are totally unable to accept that contention. It has already been noted that this is entry tax with reference to octroi. The Supreme Court has laid down in Nagar Mahapalika v. State of U.P. [1988] 70 STC 97 that the taxable event for the imposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally, oranges and lemons are berries, but otherwise no one would consider them as such.' The Exchequer Court also referred to a pithy sentence from '200 Chests of Tea', per Story, J. (1824) 9 Wheaton (US) 430 that 'the Legislature does not suppose our merchants to be naturalists, or geologists, or botanists'." Again in Nat Steel Equipment Pvt. Ltd. v. Collector of Central Excise [1988] 69 STC 58 (SC) at page 61 interpreting "domestic electrical appliance" the Supreme Court pointed out as follows: "A domestic electrical appliance, in our opinion, would be an electrical appliance of a kind generally used for domestic purposes. It may also be used at places other than the home or the house, but that would not destroy the character of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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