TMI Blog2015 (3) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... ctrical goods. The said view is fortified by a decision of the Supreme Court in Ponds India Ltd. [2008 (5) TMI 46 - SUPREME COURT], wherein it has been emphatically held that if an entry had been interpreted consistently in a particular manner for several assessment years, ordinarily it would not be permissible for the Revenue to depart therefrom, unless there is any material change; and that the burden of proof is on the taxing authorities to show that the item in question is taxable in the manner claimed by them. Further, the cord wire, which connects the main switch with the instrument, is transmitting electricity from the main switch to the instrument. Of course, the cord wire functions based on the electrical energy it receives f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was originally assessed on the total and taxable turnover of ₹ 2,54,371/- for the assessment year 1991-1992 under the Tamil Nadu General Sales Tax Act, 1959. In the said assessment, the main cord connecting the table cord and the main switch was assessed as electronic goods taxable at the rate of 3%. 2.2. Pursuant to the same, the Assessing Officer revised the said assessment treating the item in question as electrical goods and applied higher rate of tax at 10% in lieu of the original assessment at 3%. 2.3. Aggrieved by the said order, the assessee appealed to the Appellate Assistant Commissioner (CT), Salem. The First Appellate Authority, by order dated 21.10.1993, while observing that the tape recorder cord manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Commercial Taxes, Madurai Division v. Ravi Auto Stores [1968] 22 STC 172 (Mad.). In the said decision, this Court while considering whether welding electrodes are electrical goods , formulated the tests as follows : Intrinsically, the goods in question must be electrical goods and, secondly, their use cannot be had without electrical energy. Merely because an article cannot be used without electricity, it may not be decisive. It is necessary that, apart from that fact, the article, by its very nature, answers the description of 'electrical goods'. (emphasis supplied) As an illustration, it was observed in the said decision as under: For instance, the use of a motor-car cannot be had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords, Phrases Commodities under Sales Tax Laws has stated, 'the fact that the electronic goods cannot be used without the aid of electricity is not the only criterion to determine whether those goods can be treated as electrical goods. The really important criterion is whether those goods are regarded as electrical goods in common parlance. It might consist of electronic systems, instruments, appliances, apparatus, equipment operating on electronic principles and all types of electronic components, parts and materials. (emphasis supplied) In the said decision, the Supreme Court also observed that: ... an electrical device can be an electronic device, but an electronic device cannot be an electrical device. 8. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. In the case on hand, the cord wire, which connects the main switch with the instrument, is transmitting electricity from the main switch to the instrument. Of course, the cord wire functions based on the electrical energy it receives from the main switch and transmits to the instrument. These cord wires are manufactured for a special and limited purpose for transmitting electricity to tape recorder. In other words, they are specially designed for a specific purpose, namely, to supply external power to the tape recorder. They cannot be regarded as electrical goods in common parlance. This aspect has been overlooked by the Tribunal. 11. The view taken by this Court treating the cord wire as an electronic device merely transmitting e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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