TMI Blog2017 (2) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... f 2017 With CIVIL APPLICATION (OJ) NO. 58 of 2017 In TAX APPEAL NO. 46 of 2017 - - - Dated:- 3-2-2017 - MR. M.R. SHAH AND MR. B.N. KARIA, JJ. FOR THE APPELLANT : MS MAITHILI MEHTA, AGP FOR THE OPPONENT : M/S WADIAGHANDY AND CO, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Gujarat Value Added Tax Tribunal, Ahmedabad (hereinafter referred to as the learned tribunal ) dated 24/02/2016 in First Appeal No.23/2011 by which the learned tribunal has allowed the said Appeal preferred by the respondent herein quashing and setting the determination order passed by the learned Joint Commissioner and holding that NEBULA Jewellery Watch is covered under Entry 13(ii) of Schedule-II to the Value Added Tax Act (hereinafter referred to as the Act ), revenue has preferred the present Appeal with the following proposed question of law; (i) Whether the Hon ble Tribunal has erred in law and in facts in holding that NEBULA Watch is falling under Entry 13(ii) of the Act? [2.0] The facts leading to the present Appeal in a nutshell are as under; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er submitted /contended that the jewellery watches normally are marketed by jewellers in their show room and watch dealers are hardly selling such jewellery watch, and therefore, it was submitted that NEBULA Jewellery Watch would fall under Entry 13(ii) of Schedule II of the Act. On the other hand, it was the case on behalf of the State that NEBULA Jewellery Watch is a watch which carries mechanism of Watch. It was the case on behalf of the State that there is no specific entry of watch, and therefore, it would fall under Entry No.87 of Second Schedule of the Act. On appreciation of material on record and considering Entry No.13(ii) of Schedule II of the Act, by the impugned judgment and order, the learned tribunal has held that NEBULA Jewellery Watch would fall under Entry No.13(ii) of Schedule II of the Act. However, while holding so, the learned tribunal has observed and held that the said decision shall be applicable prospectively and the assessee /dealer shall not be entitled to refund on the basis of the said decision, more particularly, with respect to the past transactions. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... precious metals are used. It is submitted that, as such, it is a jewellery watch manufactured and designed by the precision craftsman of the Company and by the designers and artisans like goldsmith. It is submitted that the value of gold and /or silver and /or precious stones in the NEBULA Watch remains at almost 90% to 95% whereas the value of watch is hardly 5%. It is submitted that NEBULA Watch is a piece of jewellery where a watch movement is embedded in such jewellery. It is submitted that, as such, such watches are manufactured within the factory of the assessee /dealer with precious metals like gold and /or silver and /or stones. It is submitted that NEBULA Watches are not sold normally in watch shops and the same are normally sold in jewellery shops. It is submitted that therefore the NEBULA Watch is more a jewellery rather than watch. It is submitted that therefore the same is rightly to be held to be falling under Entry No.13(ii) of Schedule II of the Act. It is further submitted that either it may be treated as Article or Jewellery as the same is made of gold and /or silver and /or other precious metals and /or precious stones, and therefore, the same shall fall under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us stone remains 90% to 95%. Thus, the NEBULA Watch is made of gold and /or silver and /or precious metal and /or precious stones, which are manufactured within the factory of the assessee with precision craftsmanship by the designers and artisans like goldsmith. NEBULA Watches are sold by and large at jewellery shops and they are not sold in normal ordinary watch shops. Thus, the jewellery watches are normally marketed by the jeweller in their showrooms. From the certificate of authentic person, production In-charge of the factory, it appears that in making NEBULA Watch huge labour /making charges is spent ranging upto ₹ 18,000/- to ₹ 65,000/-. From the certificate produced on record, it appears that NEBULA Watches are manually polished and individually inspected, cleaned and manually assembled. All the diamond settings are done manually. Around 30% in terms of value addition involves labour work and the polishing stone settings etc. are of manual artisan work and not by machine. As observed hereinabove, the content of gold and /or silver and /or precious metal and /or precious stone is predominant and the value of gold remains at almost 90% to 95% whereas the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cientific dissertations upon sociology we find those articles described in those books as jewelery . The articles of value used for personal adornment in our civilization are, and for centuries have been, the precious metals, -gold and silver, to which, I think, platina is now general added, and what are known as precious stones, the diamond, sapphire, ruby etc. Articles manufactured form those for the purpose of personal adornment are known as articles of jewellery (Robins v. Robertson, 33 Fed 709, 710) A bag of coins would not pass under a bequest of jewellery (Sudbery. Brown, 4 W.R. 736 Eng.) Hat pins, hair pins, breast pins, buckles, and other similar ornaments adapted for personal use or otherwise, and composed of base metal or imitation of precious metals and otherwise, some being set with imitation precious stones are dutiable as jewellery. As per meaning of Jewel /Jewellery in Law Lexicon Dictionary means Articles manufactured from those for the purpose of personal adornment are known as articles of jewellery. Even hair pin, hat pin, buckles and other similar ornaments adapted for personal use or otherwise, and composed of base metal or imitation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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