TMI Blog2015 (11) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to such sales. - As seen from the documents available on record, when the original authority and the appellate authority accepts that those air driers are installed in the factory site situate in the State for the manufacture of any goods, it only means that the goods in question should be installed in the factory site in the course of manufacture of any goods. There is no intentment of actual use of the goods in the manufacture. The words “installation of in his factory” or “use in his factory” cannot be misread as to be used as inputs in the manufacture of goods. They are machinery used by the factory at site for manufacture of goods. - requirement as envisaged under Section 3 (5) of the Act is fully satisfied in this case. The good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... XVII Declaration. Against the said order of the assessing officer, the assessee/appellant went on appeal to the appellate Assistant Commissioner. The Appellate Assistant Commissioner gave relief in respect of weighting systems, which is not the subject matter of the present appeal and also allowed the appeal insofar as air driers is concerned and modified the penalty. The relevant portion of the order of the Appellate Assistant Commissioner is extracted hereinbelow for better clarity :- Item (i) : This item relates to purchase of drier which is used in the course of manufacturing activity in the factory premises and it is used for the purpose of maintaining the temperature of the factory room suitable to produce the tractor parts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (CT) is sustainable or not? Heard both sides. Records perused. The Authorized Representative emphasized that the Gem dried is used to remove moisture by cooling the comprised air to 9 temperature of 2 degree C to 3 degree C. The air drier does not fall within Entry 21 of Part DD which applies only to electrical appliances. Which explains the goods which falls under the above category are domestic and commercial appliances which are used in Hotels, Kitchen, etc. Considering the nature and function of the goods, it is very clear that the appliances air drier purchased by the dealer was not a raw material component used in the manufacture as their parts. It is only an instrument to control the temperature of factory room just li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the appellant that since the said goods form part of Form B, based on which Form XVII declaration was filed, the tax deducted on the said goods @ 3% instead of 12%, by the appellant is completely justified. The Tribunal has not considered the relevant forms in the light of Section 3 (5) of the Act and Clause (3) of the Eighth Schedule and, therefore, the order of the Tribunal deserves to be set aside allowing the appellant to deduct tax @ 3%. 8. Heard the learned counsel appearing for the appellant and the learned Government Advocate, on notice, appearing for the respondent and perused the materials available on record as also the relevant provisions of the Act relied on by the learned counsel for the appellant. 9. To appreciate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of goods. They are machinery used by the factory at site for manufacture of goods. 11. Further, de hors the above primary issue, a reading of the order of the Tribunal clearly reveals that the Tribunal has misconstrued that air drier is just like an air conditioner. There is no necessity for the Tribunal to classify the goods by drawing an analogy to another equipment, viz., air conditioner. Further, it is clearly recorded by the Tribunal that air driers are used to remove moisture by cooling the compressed air from 9 degree C to 2 to 3 degree C and, it thus performs certain functions for the purpose of manufacturing activity undertaken by the assessee. Even otherwise, it specifically falls under Clause (3) of Eighth Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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