TMI Blog1994 (3) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... th effect from April 1, 1981) is claimed, on the ground that municipality is no other than the department of Government and therefore the sales to the Municipality fall within the purview of the aforesaid notification. The Joint Commissioner has negatived the contention. It has been held that the turnover of Rs. 53,475 relating to supply of electrical goods to Kumbakonam Municipal Council is not eligible for concessional rate of tax at 4 per cent and the decision in Troks Pharmaceuticals Private Ltd. v. Excise and Taxation Officer reported in [1984] 57 STC 240 (P H) has no relevance. 3.. Therefore, the question for consideration is as to whether the sales made to the Kumbakonam Municipal Council are eligible for concessional rate of sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tamil Nadu hereby directs that the rate of tax payable by any dealer under the said Act on the sales of electrical goods falling under entries in items 41, 41-A, 41-B and 41-C of the First Schedule to the said Act, to electrical undertakings in the State of Tamil Nadu, State and Central Government departments in the State of Tamil Nadu and the Indian Railways, shall be reduced to the rate specified in sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956). Explanation.-For the purposes of this notification, 'electrical undertakings' shall mean the following public or private undertakings which are engaged in the generation, transmission of electrical energy or distribution of electrical energy to the pub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he State Government. The fact that the State Government exercises certain power over the municipality under the provisions of the Tamil Nadu District Municipalities Act does not by itself make the municipality as a part of the Government or a department of the Government. The municipal council is constituted under the provisions of the Act. It is an elected body, elected for a statutory period. Therefore, it is not possible to hold that it is a part of the Government or a department of the Government. The decision in Troks Pharmaceuticals Private Ltd. v. Excise and Taxation Officer [1984] 57 STC 240 (P H) cannot be held to govern the case on hand. In that case, it was found that the property in goods passed to the State Government, thus i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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