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TMI Blog2022 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... orders, while dismissing the Petitioner's appeals, the Tribunal affirmed the orders dated 1st February 2005 passed by the Assistant Commissioner of Sales Tax (ACST), Sundargarh Range, Rourkela in Sales Tax Appeal Nos.AA.271 (RL-II)/2004-05 and AA.255 (RL-II)/2004-05 respectively. 2. While admitting the present revision petitions, this Court by its order dated 27th October 2009 framed the following questions separately for considerations: "I. Whether equipment is same as machinery and would be covered under the Finance Department Notification No.44987-CTA-105/89-F dated 22nd December 1989 w.e.f. 1st January 1990 and Notification No.1691/CTA-37/01 (PT)-F dated 9th January 2002 w.e.f. 1st March, 2002? II. Whether in the facts and circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he STO and the said amount of Rs.19,61,116.15/- and Rs.10,65,244/- respectively was added to the taxable turnover for levy of sales tax at 16%. 5. Further, in the course of separate assessment in both the matters, while examining the work order issued to the Petitioner by M/s. Otto India (P) Ltd., M/s. Small Tools & Allied Manufacturing Co., SAIL RSP and HEC respectively, the STO noted that the Petitioner had undertaken a job of repairing and machining, which involved consumables like welding rod, gas and paints. The STO concluded that there was a transfer of property in the goods in the form of electrodes and paints from the dealers account. 70% of the gross receipt was allowed towards labour and services and the balance was treated as ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that an 'idler' is nothing but "a pulley riding loosely on a shaft pressing against a belt to guide it or take up the slack: also idler pulley". He also referred to entry in serial No.114 of the notification dated 31st March 2001 (SRO No.149/2001) to urge that 'equipment' does not specifically find mention in the notifications under Section 8 of the OST Act for exigibility of tax at the first point of sale. Relying on the decision of the Allahabad High Court in Commissioner of Sales Tax, U.P. v. Om Iron Foundry [1974] 33 STC 82 (All), it is contended that pulleys are not parts of machinery and they fall under unclassified goods and that ordinary pulleys connecting shafts with electrical motors or oil engines for transmission of po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery and was subject to tax in the first point of sale and therefore, Form-XXXIV could not be used. 12. The above submissions have been considered. As per the notification dated 9th January 2002 issued by the Finance Department, the entry at serial No.175 states "machinery, machinery parts and spare parts and component parts and accessories thereof and tools" would be exigible to tax at the first point of sale. Admittedly, the Petitioner is the first seller of the 'idlers' to HEC. The entry in question refers not only to machineries but also component parts thereof and accessories. It also includes 'tools'. The decision of the Allahabad High Court in Commissioner of Sales Tax, U.P. v. Om Iron Foundry (supra) was dealing with the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsequently, the Court does not find the decision in M/s. High-way Trading (Pvt.) Ltd. (supra) as having relevance here. 15. The Court is not persuaded that the idler sold by the Petitioner does not form part of machinery or is not an accessory. The distinction sought to be drawn by Mr. Sahoo between 'equipment' and 'machinery' is not convincing in the context in which the question arises here. If the idler was a component part of machinery or even an accessory or a tool, it would still be exigible to tax at the first point of sale. 16. For the aforementioned reasons, the Court answers the Questions I and II in the affirmative i.e., in favour of the Department and against the Assessee thereby upholding the view expressed by the STO, ACST a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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