TMI Blog2014 (4) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... ctron - In McGraw-Hill, Dictionary of Scientific and Technical Terms (Second edition), the term "electronic" has been defined as pertaining to electron devices or to circuits or systems utilizing electron devices, including electron tubes, magnetic amplifiers, transistors, and other devices that do the work of electron tubes - This Court considered the items in question which have been imported by assessee, hence has no hesitation or doubt in holding that these items form "machinery" used for the purpose of transmission of voice from one place to another and this process is called telecommunication – Therefore, items imported by assessee are taxable, since covered by Item 2 of the schedule of Act, 2007 - The order of Tribunal is confirmed - The revision being devoid of merit, is dismissed – Decided against assessee. - SALES/TRADE TAX REVISION No. - 366 of 2009 - - - Dated:- 10-1-2014 - SUDHIR AGARWAL, J. For the Appellant : Subodh Kumar Hon'ble Sudhir Agarwal, J. 1. Heard Sri Subodh Kumar, learned counsel for the revisionist and perused the record. 2. The only issue raised before this Court is that the electronic equipment s imported by revisionist, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The Deputy Commissioner (Assessing Authority) relied on the definition of the term machine and machinery in the Oxford Dictionary held that even an electronic apparatus or equipment would be a machine This has been confirmed by Joint Commissioner (Appeals) vide order dated 06.11.2007. The argument of assessee that telephone handsets and mobile sets are made available to consumers for communication using SIM cards and electro magnetic waves, is not a commodity so as to be considered machinery to attract tax liability under Act, 2007, has not found favour with him. This view of authorities below, has also been confirmed by Tribunal. 7. Item 2 of schedule of Act, 2007 reads as under: 2. Machinery and spare parts of machinery valuing Rupees Ten lakhs or more. (upto 31.05.2009) 8. The term machinery derive its meaning no doubt from the term machine but its scope is wider than the term machine . The word machine itself has been taken from the Latin word Machina which in turn has been derived from the Greek word Mekhane a derivation from means, expedient, remedy . 9. Earlier, a machine, used to be said to be a tool containing one or more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociated passive interconnection technologies. The nonlinear behaviour of active components and their ability to control electron flows, makes amplification of weak signals possible and is usually applied to information and signal processing. The ability of electronic devices to act as switches, makes digital information processing possible. Interconnection technologies such as circuit boards, electronic packaging technology, and other varied forms of communication infrastructure, complete circuit functionality, and transform the mixed components into a working system. Similarly, computing machines are another advanced form of machines of modern day. The Computers store and manipulate flow of electrons, with patterns in this storage, and flow being interpreted as information manipulation. 13. In other words, one can say that earlier the concept of machines was confined to the mechanized equipments but with the innovative ideas, discoveries and inventions, the concept of machines has undergone a huge but consistent change. Today, besides the traditional kind of machines, we have gone to the extent of having molecular machine, which is a concept designed in bio-technology. The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te power, or evoke, modify, apply or direct natural forces with the object in each case of effecting so definite and specific a result. The tank and its supporting structure do not satisfy this definition. (iii) Determination as to what is or what is not machinery must, to a large extent, depend on the special facts of each case. (iv) Illustrations are better guides to ascertain the true meaning of the word machinery , when used ordinarily and not as a specific definition. (v) Whether an intelligent person would, in the ordinary use of language, describe a particular thing as machinery. 20. The Privy Council in Corporation of Calcutta Vs. Chairman of the Cossipore and Chitpore Municipality (supra) also held that machinery must be something more than a solid structure built upon the ground whose parts either do not move at all or, if they do move, do not more the one with or upon the other in interdependent action with the object of producing a specific and definite result. Their Lordships said that there was great danger in attempting to give a definition of the word machinery which would be applicable in all cases and it may be impossible to succeed in such an at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity with which the machinery does the same work. Supply of power to the machine could be either by the natural forces or by human or animal energy, or electric energy or any other type of energy. 24. Referring to some other judgments of High Courts the Court held a Tractor Trailer is not a machinery , observing as under: 7. Bearing in mind, the criteria laid down by the Privy Council in order to find out what is machinery and its application in the cases referred to above, we shall now proceed to consider, as to whether the tractor-trailer is a machinery. A few illustrations would be helpful to decide whether the tractor-trailer is machinery or not. Take the case of a tailoring machine. When force is applied on the treadle, the bigger wheel which is connected to the treadle by a rod moves, which having been connected to a smaller wheel of the machinery called the balance wheel, by a belt, makes the smaller wheel to move fast and it makes all other parts to move in the designed manner. Thus, the tailoring machine answers the description of a machine. The work of stitching is done by the machine with great speed and uniformity. Doing similar work and with that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax, Madras Vs. Mir Mohammad Ali (supra) in Rashmi Enterprises Vs. State of Gujarat, 1993(91) STC 295. 26. In D.B. Bhandari Vs. State of Mysore, 1967(20) STC 25 the Karnataka High Court, while considering, whether handloom is machinery or not, said: In simpler language 'machinery' is a contrivance whereby several things are put together to work in such a way that force may be applied at a most convenient point in a most convenient way to get a particular work or an item of work done or to produce a specific article or manufactured goods. If this is the essential feature of a machinery which distinguishes it from other things, the mode or he manner in which power is fed into it or force is applied need not and should not make any difference. It is conceded, for example, that a machinery would be a machinery whether it is fed by electrical power or other form of power applied by steam or generated by burning combustible oils. If the ode or the manner in which the power is applied makes no difference in these specific cases, it should make no difference either if the source of power is either human or animal. 27. Looking to the above explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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