Allahabad High Court
M/S T.D.M. Bharat Sanchar Nigam Ltd. vs Commissioner Of Commercial Tax Lko. on 20 August, 2019
Author: Saumitra Dayal Singh
Bench: Saumitra Dayal Singh
HIGH COURT OF JUDICATURE AT ALLAHABAD ?Court No. - 59 Case :- SALES/TRADE TAX REVISION No. - 97 of 2015 Revisionist :- M/S T.D.M. Bharat Sanchar Nigam Ltd. Opposite Party :- Commissioner Of Commercial Tax Lko. Counsel for Revisionist :- Suyash Agarwal Counsel for Opposite Party :- C.S.C. Hon'ble Saumitra Dayal Singh,J.
1. Heard Shri Suyash Agarwal, learned counsel for the applicant-assessee and Shri B.K. Pandey, learned Standing Counsel for the respondent-revenue.
2. Present revision has been filed against the order of the Commercial Tax Tribunal, Meerut, dated 15.03.2014 in Second Appeal No. 511 of 2004 for A.Y. 2001-02 (entry tax). By that order, the Tribunal has dismissed the appeal filed by the assessee and confirmed the order passed by the first appeal authority, thereby confirming the assessment order imposing entry tax on import of various telecommunication equipment treating the same to be machinery valued at more than Rs. 10 lacs.
3. The present revision has been pressed on the following two questions of law:
"i. Whether on the facts and circumstances of the case, the Tribunal was correct in holding that electronic goods are covered within the term machinery and machinery parts for the purpose of entry tax ignoring that in the notification the term machinery and machinery parts has been given restrictive meaning?
ii. Whether the Tribunal was justified in not considering that taxing provision is a rule of 'strict interpretation' and there is no room of intendment?"
4. Learned counsel for the assessee wold contend that the equipment that had been imported by the assessee, was not machinery but only electronic equipment and, therefore, it was not taxable. Reliance has been placed on the Scheduled Entry No. 2, to submit that the electronic equipment would not be included under the scheduled entry.
5. The issue being raised by the present assessee is not res integra, inasmuch as similar objection had been raised by the same assessee in M/s. Door Sanchar Maha Prabandhak, Bharat Sanchar Nigam Ltd. Vs. C.C.T., Trade Tax Revision No. 75 of 2010 and connected matters, that came to be decided by order dated 02.11.2012. In that decision, a learned Judge of this Court (at Lucknow Bench) reached a conclusion that machinery was a very wide term and it included electronic gadgets, computer etc. In absence of any specific nature of electronic goods, it was further held to be covered by the general entry machinery. That decision is stated to have attained finality, inasmuch as the special leave to appeal filed against that decision was dismissed by order dated 05.07.2013. Then, it also cannot be denied that in other case being Bharat Sanchar Nigam Ltd. Vs. C.T.T., [2014] 72 VST 362 (All) 362, another learned Judge of this Court again considered the scope of the word machinery appearing in the Schedule to the Entry Tax Act. It was again reiterated that instruments imported by the assessee would fall within the term machinery and its parts. Merely because they may be considered to be electronic equipment, would not make any difference. On such reasoning and after a detailed discussion of the precedent found existing, it was held that the general consensus in the context of 'machinery' is that it is a device used for a particular purpose or result which takes energy in any form but results in combined functioning to achieve the work which otherwise may not be possible by human physical efforts or power, i.e., without help of such devices.
6. Thus, wider meaning has been given to the word machinery by this Court in the case of the assessee itself.
7. In view of the earlier existing decisions in the case of the assessee itself, there does not appear any reason to take a different view.
8. Accordingly, the revision lacks merit and is dismissed.
Order Date :- 20.8.2019 AHA