AI Structured Summary
Not yet generated for this judgment
Judgment
Swamikkannu, J.—In these five writ petitions the proprietor of Deccan Engineers, Madurai, has raised a point that when the authorities as
well as the Tribunal have held that the wet grinder comes only under the purview of item 81 and collected 6 per cent tax now all of a sudden
because of the coming into existence of item 41-B in the year 1977 under the Tamil Nadu General Sales Tax Act, 1959, it is not open to the
department to collect tax at the rate of 12 per cent. For this view the learned counsel for the petitioner had also taken me through the provision of
Sl. No. 33-C of the First Schedule to the Central Excises and Salt Act, wherein, according to him, ""domestic electrical appliances"" have got a
similar connotation and meaning as contemplated under item 81. In other words, the point that is raised on behalf of the petitioner in all these writ
petitions is that when the wet grinder is used for the purpose of grinding flour though electrically propelled, yet they can never come under the
purview of item 41-B which came into existence in the year 1977. It is submitted that the wet grinders are classified only under item 81 and this
was the basis for taxation for the years 1974-76, but subsequently because of coming into force of item 41-B from 1977 the department wants to
impose 12 per cent tax on wet grinders under item 41-B and not under item 81. This conclusion of the department, according to the learned
counsel, is wrong and as a matter of fact, he submits that the conclusion of bringing the wet grinders under the purview of item 41-B is incorrect.
The point for consideration in all these writ petitions is whether ""wet grinders"" can be classified under item 41-B or under item 81 ?
Item 81 and item 41-B in the First Schedule to the Tamil Nadu General Sales Tax Act reads as follows :
------------------------------------------------------------------------
A mere perusal of item 41-B will clearly show that ""wet grinders"" come under domestic appliances. The domestic appliances are propelled and run
by electrical energy. Merely because the word ""grinders"" alone appears in item 41-B it has not excluded ""wet grinders"". Therefore under no stretch
of imagination the ""wet grinder"" can be excluded from the purview of classification of ""grinders"" under item 41-B. Therefore the classification made
from the year 1977 after the entry coming into force under item 41-B in the enactment and assessed on that basis holding that such percentage of
tax that has to be paid by the assessee, cannot be said to be irregular, illegal or opposed to the concept underlying the provision of the enactment.
Therefore there is no substance in the contentions raised by the learned counsel for the petitioner. It is also pointed out by the learned counsel for
the petitioner that item 41-B came into force from 13th September, 1977 and, therefore, the department has a right to levy tax from that date
under item 41-B. It is made clear by this Court that 12 per cent tax has to be collected from 13th September, 1977. In the circumstances. Writ
Petitions Nos. 5895 and 5897 are dismissed. There is no order as to costs.
Writ Petitions Nos. 5893 and 5894 of 1981 relate to the years 1975-76 and 1976-77 and there cannot be a tax at 12 per cent. Therefore Writ
Petitions Nos. 5893 and 5894 of 1981 are allowed and the tax collected from the petitioner at the rate of 12 per cent under item 41-B will be
refunded to the petitioner with respect to these petitions. So far as the other petitions are concerned, they are governed by item 41-B which came
into existence under the provisions of the enactment on 13th September, 1977.
As regards Writ Petition No. 5896 of 1981, it is submitted that tax has to be collected for the period from 1st April, 1977 to 13th September,
1977 only under item 81 and tax has to be collected under item 41-B for the subsequent assessment year 1977-78. Writ Petition No. 5896 of
1981 is remanded to the assessing authority in order to assess tax as stated above and to collect tax amount due and payable by the petitioner
herein for the year 1977-78. There is no order as to costs, in all the petitions.
Writ Petitions Nos. 5895 and 5897 of 1981 dismissed.
Writ Petitions Nos. 5893 and 5894 of 1981 allowed.
Writ Petition No. 5896 of 1981 remanded.