TMI Blog1963 (11) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 15 of Schedule C. This contention was, however, negatived by the Deputy Commissioner of Sales Tax. The Deputy Commissioner of Sales Tax described the role of humidifiers in the textile industry in the following words : The humidifiers are used by the textile mills. The purpose of this is to maintain the humidity of a particular room where the process of spinning etc., is done. This humidity helps to increase the length and strength of yarn. According to the learned representative without humidifiers it is not possible for any of the textile mills run according to the modern technique to run their mills. In order to give a clear idea of the use of the humidifiers the learned representative furnished me with an extract from the textile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e humidity of the atmosphere and to maintain a certain humidity in the mills which is necessary for improving the quality of yarn and preventing waste of yarn and that they are absolutely essential to the modern textile industry. The Tribunal, however, held that this circumstance did not bring humidifiers within Entry 15 of Schedule C. The Tribunal observed that in order to bring an item of machinery within Entry 15 of Schedule C it was necessary to show that it was used in the actual process of manufacture of cloth and that humidifiers though essential to the modern textile industry were not used in the actual process of manufacture of cloth and were, therefore, not covered by Entry 15 of Schedule C. The Tribunal then proceeded to consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery at all and cannot, therefore, possibly come within the ambit of Entry 15 of Schedule C. This argument which was advanced by Mr. A. D. Desai, learned Assistant Government Pleader appearing on behalf of the State, was sought to be supported by reference to a decision of the Privy Council in Corporation of Calcutta v. Cassipore Municipality (A.I.R. 1922 P.C. 27.). The question which arose in this case was whether a steel tank with its supporting structure for storage of water was machinery within the meaning of proviso 3 to section 101 of the Bengal Municipal Act. Lord Atkinson delivering the judgment of the Privy Council said that there was great danger in attempting to give a definition of the word machinery which would be applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m that they are used in the manufacture of cloth, they would certainly fall within Entry 15 of Schedule C. 6. What we must, therefore, proceed to consider is whether humidifiers are machinery used in the manufacture of cloth. On this part of the case great emphasis was laid by Mr. A. D. Desai on behalf of the State on the use of the words machinery used in the manufacture of goods in Entry 15 of Schedule C. Mr. A. D. Desai contended that only those items of machinery fell within Entry 15 of Schedule C which were used in the actual process of manufacture of cloth and that humidifiers which were installed in textile mills merely for the purpose of maintaining a certain humidity could not be said to be machinery used in the actual process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roving the quality of yarn and they are essential to the modern textile industry. They play an important role in the manufacturing process in that they provide a particular humidity without which yarn would not acquire proper strength and there may be breakages in yarn affecting not only the quality of the yarn but also the smooth functioning of the ring frames. They are as essential to the manufacturing process as ring frames or looms and they are certainly machinery used in the manufacture of cloth. Any machinery which helps to improve the quality of yarn, to avoid breakages in yarn and to secure smooth functioning of the ring frames would certainly be machinery used in the manufacture of cloth. We are, therefore, of the view that humidif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be agricultural implements. The question was not whether water pumps could be said to be machinery used in agriculture. The question which we have to consider is, however, an entirely different question, namely, the true connotation of the expression machinery used in the manufacture of goods and on that question this decision unfortunately does not throw any light. 8. In this view of the matter, in our opinion, humidifiers sold by the applicants under their bill No. 117 dated 30th October, 1960, are covered by Entry 15 of Schedule C and not by Entry 20 of Schedule C and the question referred to us will, therefore, be answered accordingly. The respondent will pay the costs of the reference to the applicants. 9. Reference answered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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