LexTHE COMMISSIONER OF TRADE TAX, U.P. versus S/S. PARIKH GRAMODYOG SANSTHAN
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[2010) 9 S.C.R. 881 1 THE COMMISSIONER OF TRADE TAX, U.P. A v. S/S. PARIKH GRAMODYOG SANSTHAN (Civil Appeal No. 651 of 2005) ... _ AUGUST 11, 2010 B [D.K. JAIN AND H.L. DATTU, JJ.] UP. Trade Tax Act, 1948 - Entry 74 (f) and amended Entry 74 (a)(iii) - 'Voltage Stabilizer' - Levy of sales tax - Classification of, as 'electrical goods' under Entry No. 16 of c the Schedule or as 'electronic goods' under Entry No. 7 4(f) - Held: Automatic voltage stabilizer involves the operation of a number of electronic components - Many of its components might use electricity but that cannot be the sole reason for classifying it as an electrical goods - Electrical D device can be electronic device, but electronic device cannot be electrical device - Thus, taking into consideration the components, purpose for which it is used and principles on which it works, voltage stabilizer is 'electronic goods' - Notification No. 1223 dt 31.03.1992. E Voltage stabilizer - Purpose, components and functions - Explained. Words and Phrases: 'Electrical goods' and 'electronic goods' - Meaning of. F The respondent-assessee was engaged in the business of manufacture of voltage stabilizer and sales thereof. The assessing officer passed an assessment order directing the respondent to pay certain amount as G sales tax, on basis of the rate applicable to electrical goods under Entry No. 16 of Schedule to U.P. Trade Tax Act, 1948. The respondent contended that they were liable to pay taxes at the rates applicable to electronic 881 H 882 SUPREME COURT REPORTS [2010] 9 S.C.R. A goods under the old Entry 74(f) and the amended Entry " 7 4(a)(iii) of the Notification No.1223 dated 31.03.1992. In appeal, the tribunal held that the voltage stabilizers were 'electronic' goods and not 'electrical' goods'. The High Court upheld the order of the tribunal. Therefore, the B appellants-revenue filed the instant appeals. Dismissing the appeals, the Court HELD: 1. An automatic voltage stabilizer involves the operation of a number of electronic components. A C voltage stabilizer might have many components some of which use electricity. This cannot be the sole reason for classifying it as an electrical goods. An electrical device can be an electronic device, but an electronic device cannot be an electrical device. The tribunal, which was D the last fact finding authority, after taking into consideration the components of voltage stabilizer, the purpose for which it is used and the principles on which it works came to the conclusion that the voltage stabilizer is electronic goods, for the purpose of taxation under U.P. E Trade Tax Act, 1948. The reasoning and conclusion reached by the tribunal is accepted. Therefore, there is no infirmity in the impugned judgment. [Paras 18 and 22] [892-E-G; 893-G] 2. Entry 74 of the Notification No.1223 dated 31st F March, 1992 and the subsequent Notification No. 3420 dated 1st October, 1994 speaks of electronic goods. There is i:to material change in these two Notifications, except change in the rate of tax on certain electronic items. Entry 74(f) of the earlier Notification and 74(a)(iii) G of the subsequent Notification speaks of all the other electronic goods not specified any where else in the Schedule or in any other Notification. [Para 12] [889-C-D] 3. Electrical Goods is such articles the use of which H cannot be had except with the application of electrical COMMISSIONER OF TRADE TAX, U.P. v. SIS. 883 PARIKH GRAMODYOG SANSTHAN energy. It must be kept in mind that an electronic device A can be an electrical device but an electrical device cannot an electronic device. The electronic goods cannot be used without the aid of electricity is not the only criterion to determine whether those goods can be treated as electrical goods. The really important criterion is whether B those goods are regarded as electrical goods in common parlance. It might consist of electronic systems, instruments, appliances, apparatus, equipment operating on electronic principles and all types of electronic components, parts and materials. [Paras 13 and 14] [889- c F-H; 890-A-B] The Law Lexicon by Justice T.P. Mukherjee 4th Ed, 1989 p.574;/nterpretation of Words, Phrases & Commodities under Sa/es Tax Lawsby Sri M.P. Agarwal - referred to. D 4. A voltage stabilizer is a device which is able to deliver relatively constant output voltage while input voltage and load cu
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