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TMI Blog2021 (9) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... angalore and engaged in the manufacture and sale of Indian Musical Instruments. 3. The petitioner-Company states that they are pioneer in the field of electronic musical instruments and teaching and practice aids for music. The abovesaid Company is operating for more than about 4 decades and has designed, developed, manufactured and marketed unique Indian Musical Instruments, which operates on electronic principles, that has found wide acceptance amongst top musicians as well as Teachers, Students, Music Colleges, Universities and Government Institutions such as Akashvani, across the country. The Department of Secondary Education in Karnataka has permitted these instruments to be used in music examinations. 4. The learned counsel for the petitioner contended that the petitioner had claimed exemption on the sales of the Indian Musical Instruments in terms of G.O.Ms.No.45/CT(B2) dated 12.02.2004, which exempted sales of Indian Musical Instruments. The said Notification reads that "exemption in respect of tax payable by any dealer on the sale of Indian Musical Instruments". Thus, any item which qualifies as Indian Musical Instrument is eligible for exemption. The said Notification d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemptions and reductions of tax, the learned counsel for the petitioner states that the manner in which the impugned Notification was issued classifying the Indian Musical Instruments is in violation of Section 17 itself. 9. In view of the impugned Notification dated 30.12.2006, the respondents have issued the impugned notice proposing to reject the petitioner's claim of exemption by placing reliance on G.O.Ms.No.193, dated 30.12.2006 on the ground that the said Notification is a clarification and therefore, it is to be applied from the date of the original Notification on 12.02.2004. 10. The learned counsel for the petitioner is of an opinion that under First Schedule Part C Entry 49A of the TNGST Act, the Legislators had specifically stated of the Typewriters (excluding electronic typewriters). However, no such descriptions are provided in the impugned order and therefore, in the absence of express condition, the petitioner-Company is entitled for an exemption as they are the manufacturers of Indian Musical Instruments. 11. It is not stated whether the Indian Musical Instrument is manufactured either electronically or manually. In the absence of any such specific descrip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the object of Entry 15(i) of the Second Schedule of the Karnataka Sales Tax Act, 1957, to promote Indian music and Indian musical instruments, it is just and necessary to hold that all the instruments come under the definition within the purview of Entry 15(i) and should be taxed. Accordingly, the revision is dismissed." 14. Relying on the above observations made in the judgment of the Karnataka High Court in the case of State of Karnataka vs. Radel Electronics Pvt Ltd (cited supra), the petitioner made a submission that Indian Musical Instruments manufactured electronically are also eligible to be classified as Indian Musical Instruments and therefore, the petitioner is entitled for exemption from payment of tax. 15. The learned Government Advocate, appearing on behalf of the respondents, disputed the said contentions raised by the learned counsel for the petitioner, by stating that the exemption is provided to encourage the poor artisans, who are engaged in the manufacturing of those instruments from generation to generation, who are normally living in penurious circumstances. There is another angle in granting such relief, which is to make available within the reach of poor an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusively enumerated in the later Government Order. By this act, it cannot be said that the scope of the earlier Government Order was neither narrowed down nor curtailed nor withdrawn retrospectively. On the other hand, more clarity has been introduced and therefore, there is no question of giving retrospective effect to the earlier Government Order. 19. The electronic musical instruments as manufactured by the petitioner would squarely fall under Item 14(iv) of Part D of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 and therefore taxable at 12%. The above Entry starts with the term 'electronic instruments', which is comprehensive enough to bring within its fold electronic musical instruments also. 20. It is the contention of the petitioner in the affidavit that the goods enumerated under the said Entry are quite different from the musical instruments and therefore, the said Entry is not appropriate to the goods manufactured by them. The items which cannot straightaway be treated as electronic by their very names such as cash registers, tabulaing and calculating machines etc., have been specifically enumerated in the Entry and this does not mean that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments namely, Veena, Violin etc. Thus, the subsequent Notification dated 30.12.2006 is only in the nature of clarification to understand what are all the instruments falling under the head of 'Indian Musical Instruments'. The benefit of exemption is not taken away and the benefit of exemptions conferred in Notification G.O.Ms.No.45 remains in tact. The subsequent Notification was issued on 30.12.2006 enumerating the list of instruments which all are falling under the category of Indian Musical Instruments. Thus, the impugned notice dated 30.12.2006 cannot be construed as if an alteration made in respect of the exemption granted in Notification G.O.Ms.No.45. 25. Even in the counter, the respondents have clearly stated that the intention in granting exemption of tax on Indian Musical Instruments is to grant relief to poor artisans, who are engaged in the manufacture of those instruments from generation to generation, who are normally living in penurious circumstances and further to make available such instruments within the reach of poor and needy artisans, so as to develop the traditional Indian music in India. Thus the purpose and object of the exemption must be for India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion of conferring power of exemption to the Government is to enforce the Constitutional principles of social justice equality in status amongst the citizen, including the economic status, which all are to be achieved. The power of exemption is to be utilised for the upliftment of the depressed, oppressed and the poor class of people and not for the purpose of granting benefit to the large profit making organisations. Thus, any abuse or excessive grant of exemption is to be construed as opposed to public policy under the Constitutional philosophy. 30. In these cases, as discussed in the aforementioned paragraphs, exemptions granted by invoking Section 17 of the TNGST Act, remains as it is in respect of Indian Musical Instruments and the impugned Notification dated 30.12.2006 in G.O.Ms.No.193 was issued to clarify the Indian Musical Instruments, which all are falling under the exemption clause notified in G.O.Ms.No.45, dated 12.02.2004 and therefore, the subsequent Notification is a clarificatory in nature and cannot be construed as cancellation of the exemption granted in G.O.Ms.No.45, dated 12.02.2004. 31. The very Government Notification dated 30.12.2006 in G.O.Ms.No.193 would ..... 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