TMI Blog1998 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the generator installed in the assessee's factory for generating 'electricity' would not come under the category of 'electrical machinery' but would come under the classification of plant and machinery and, hence, the assessee's claim for extra-shift allowance should be allowed?" The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded that it was not "electrical machinery" and, therefore, extra-shift allowance cannot be disallowed. The Revenue appealed and the Appellate Tribunal found that only electrical machinery belonging to the class of switch gear and instruments, transformers, etc., could be denied the extra-shift allowance and not all kinds of electrical machinery. Further, it was noted that the generator was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... city. It would not also include any machinery which is run by electricity or whose motive power is electricity. What it comprehends will be that the machinery is such that inbuilt into it is the electric motor which forms a vital and inseparable part of the machinery. The fact that electrical devices are put into the machinery for the purpose of allowing electricity to pass through will not make t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 447 and the Kerala High Court in CIT v. P. Veriah [1995] 211 ITR 244. It appears the Central Board of Revenue has already issued Circular No. 1454 on the subject. This should satisfy all concerned. Thus, the Tribunal has committed no mistake in not treating a generator as "electrical machinery". In view of the aforesaid decisions, it goes without saying that the question posed for consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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