TMI Blog2021 (11) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... yush Agrawal, J. For the Revisionist : B.K.S. Raghuvanshi For the Opposite Party : C.S.C. ORDER HON'BLE PIYUSH AGRAWAL,J. Heard Shri B.K.S. Raghuvanshi, learned counsel for the applicant - revisionist and Shri A.C. Tripathi, learned Standing Counsel for the opposite party. The present revision has been filed against the judgement order dated 19.05.2015 passed by the Commercial Tax Tribunal, Bareilly Division, Bareilly in Second Appeal No. 475 of 2013 for the assessment year 2003-04. The instant revision has been filed raising following questions of law:- I. Whether the court below have failed to appreciate that on one side electronic goods are accepted and treated as equipment and on other hand they have treated it machinery, the conclusion of Trade Tax Authority and Tribunal are self contradictory? II. Whether under the provisions of U.P. Trade Tax Act, until and unless Electronic goods are Classified separately, hence the electronic equipment can not be treated as machinery for entry Tax purposes? III Whether the taxing authority, Appellate Authority as well as the Tribunal have failed to appreciate the question of fact and law? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of above discussions, it is clear that during the assessment year under consideration, the equipments which were imported by the revisionist-assessee, were the machinery and its part and the value of the same was more than ten lacs. So, the same is subject to entry tax. Further, in Bharat Sanchar Nigam Ltd. Vs. CCT reported in (2014) 72 VST 362, this Court has observed as under:- 7. Item 2 of schedule of Act, 2007 reads as under: 2. Machinery and spare parts of machinery valuing Rupees Ten lakhs or more. (upto 31.05.2009) 8. The term machinery derive its meaning no doubt from the term machine but its scope is wider than the term machine . The word machine itself has been taken from the Latin word Machina which in turn has been derived from the Greek word Mekhane a derivation from means, expedient, remedy . 9. Earlier, a machine, used to be said to be a tool containing one or more parts that uses energy to perform an intended action . Usually in its nascent stage the machines were powered by mechanical, chemical, thermal, or electrical means, and are often motorized. But with the advent of electronic digital technology, it has led to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electronic devices to act as switches, makes digital information processing possible. Interconnection technologies such as circuit boards, electronic packaging technology, and other varied forms of communication infrastructure, complete circuit functionality, and transform the mixed components into a working system. Similarly, computing machines are another advanced form of machines of modern day. The Computers store and manipulate flow of electrons, with patterns in this storage, and flow being interpreted as information manipulation. 13. In other words, one can say that earlier the concept of machines was confined to the mechanized equipments but with the innovative ideas, discoveries and inventions, the concept of machines has undergone a huge but consistent change. Today, besides the traditional kind of machines, we have gone to the extent of having molecular machine, which is a concept designed in bio-technology. The present day Scientist and Researchers term these machines and equipments as part of nano-technology . 14. The term machinery , as has already said, includes something more than machines and in general it can be said to include: (i) Machines o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to what is or what is not machinery must, to a large extent, depend on the special facts of each case. (iv) Illustrations are better guides to ascertain the true meaning of the word machinery , when used ordinarily and not as a specific definition. (v) Whether an intelligent person would, in the ordinary use of language, describe a particular thing as machinery. 20. The Privy Council in Corporation of Calcutta Vs. Chairman of the Cossipore and Chitpore Municipality (supra) also held that machinery must be something more than a solid structure built upon the ground whose parts either do not move at all or, if they do move, do not more the one with or upon the other in interdependent action with the object of producing a specific and definite result. Their Lordships said that there was great danger in attempting to give a definition of the word machinery which would be applicable in all cases and it may be impossible to succeed in such an attempt. However, they observed that the word machinery when used in the ordinary language prima facie, means some mechanical contrivances which by themselves or in combination with one or more other mechanical contrivances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther judgments of High Courts the Court held a Tractor Trailer is not a machinery , observing as under: 7. Bearing in mind, the criteria laid down by the Privy Council in order to find out what is machinery and its application in the cases referred to above, we shall now proceed to consider, as to whether the tractor-trailer is a machinery. A few illustrations would be helpful to decide whether the tractor-trailer is machinery or not. Take the case of a tailoring machine. When force is applied on the treadle, the bigger wheel which is connected to the treadle by a rod moves, which having been connected to a smaller wheel of the machinery called the balance wheel, by a belt, makes the smaller wheel to move fast and it makes all other parts to move in the designed manner. Thus, the tailoring machine answers the description of a machine. The work of stitching is done by the machine with great speed and uniformity. Doing similar work and with that speed is impossible by human physical power. So also a typewriter, which works in a systematic manner on pressing the keys of the keyboard by the fingers in the required manner which work cannot be performed by human physical power. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om is machinery or not, said: In simpler language 'machinery' is a contrivance whereby several things are put together to work in such a way that force may be applied at a most convenient point in a most convenient way to get a particular work or an item of work done or to produce a specific article or manufactured goods. If this is the essential feature of a machinery which distinguishes it from other things, the mode or he manner in which power is fed into it or force is applied need not and should not make any difference. It is conceded, for example, that a machinery would be a machinery whether it is fed by electrical power or other form of power applied by steam or generated by burning combustible oils. If the ode or the manner in which the power is applied makes no difference in these specific cases, it should make no difference either if the source of power is either human or animal. 27. Looking to the above explanation and interpretation with reference to machinery I find that, how an individual or a party understand the thing or a commodity by itself would not be decisive in holding a particular commodity to belong to a particular category. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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