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TMI Blog2011 (1) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case, clean air equipment (laminar flow clean air equipment) and accessories thereof are electrical appliances under entry 18, Schedule A of the Act or industrial machinery (general goods)? (ii) Whether the assessee was liable to pay interest under section 25(5) of the Act ibid. in view of the honourable Supreme Court of India judgment in J.K. Synthetics Ltd. v. Commercial Taxes Officer reported in [1994] 94 STC 422?" The assessee is a registered dealer under the Act at Faridabad and is engaged in manufacture of laminar flow clean air equipments used in manufacturing pharmaceuticals products like intravenous fluids injectable vaccines, etc. The assessee claimed that the goods sold by it are industrial machinery to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t reiterated the same grounds which have been considered by the revisional authority while giving his finding. The main plea of the appellant is that the goods manufactured by the appellant are not electrical appliance. No new grounds have been added which may warrant any interference in the orders of the lower authority. The items manufactured by the appellant are necessarily appliance which are dependent on electricity for their operation. A host of such appliances such as fans/heaters/lamps/blowers are in fact energy dependent. On their operation these are used for a host of different purposes. The revisional authority in its detailed orders has dealt with this point and has given finding based on the judgments of the High Court. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electronics Engineering) an electrical appliance as under: "A utilization item of electric equipment, usually complete in itself, generally other than industrial, normally build in standard sizes, or type that transforms electric energy into another form heat or mechanical at the point of utilization, for example a flat iron, toaster, washing machine, dryer, hand drill, food mixer and air-conditioner." Reliance has also been placed on the following judgments: (i) Viswa & Co. v. State of Gujarat [1966] 17 STC 581 (Guj). (ii) Collector of Central Excise v. Alco Industries [1991] 55 ELT 184 (Mad). (iii) Shri Punit Ghar Ganti v. Union of India [1981] 8 ELT 121 (Guj). In Viswa & Co. v. State of Gujarat [1966] 17 STC 581 (Guj), it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 ELT 121 (Guj), the Gujarat High Court considered the question whether flour grinding machine is an electrical appliance. It was held that the flour grinding mill was not covered by the expression "domestic electrical appliances" as it was required to be fitted with separate electric motors and could not by itself be operated with the help of electricity. We are of the view that the judgments relied upon do not directly deal with the item in question. It cannot be disputed that the tariff entry has to be given in its ordinary meaning as understood in common parlance. The entry in the Schedule is as under: "Electrical appliances excluding electric bulbs, electric motors, motor starters and mono-block pumping sets but including fluorescen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose or the industrial purpose for use of the article. We, thus, do not find any reason to take a view different from the one taken by the Tribunal. The question is, thus, answered against the assessee and in favour of the Revenue.
Now coming to question (ii), it is not disputed on behalf of the State that in view of the Constitution Bench judgment of the honourable Supreme Court in J.K. Synthetics Ltd. v. Commercial Taxes Officer [1994] 94 STC 422, the levy of interest was effective from the date of issuance of demand notice and not from the date of filing of return. The said question, thus, stands answered in favour of the assessee and against the Revenue.
Reference is disposed of. X X X X Extracts X X X X X X X X Extracts X X X X
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