STATE OF KARNATAKA Vs. RADEL ELECTRONIC PVT. LTD.

JUDGEMENT

(1.) The respondent assessee is a manufacturer of Indian musical instruments like Veena, Tamboora, Shruthi box and Tabala. The Veena manufactured by the assessee has the shape and appearance of the traditional Veena but it appears smaller in size, quite bandy to carry, the parts could be dissembled and assembled. The Veena has Tamboora component, in addition, the Veena has electrical gadgets like mike, amplifier and speaker (for better voice quality and audibility). The electrically powered stringed electronic instrument similar to Veena sold by the assessee is called Sunadavinodhini. The Tamboora manufactured by the assessee is called Saaranga Sparshini. The shape and appearance of the said Tamboora fully matches with the traditional Tamboora. However, the Tamboora manufactured by the assessee has electronic gadgets like mike, speaker and amplifier (for better voice quality and audibility). The Tabala manufactured by the assessee does not bear the shape and appearance of the Tabala but it is in the shape of a tape-recorder, by a switch of a button, the instruments will play the Tabala music which is pre-recorded and fixed in the instruments. Similarly, the Shruthi box will not have the shape and appearance of traditional Shruthi box but it is in the shape of tape-recorder, by switch of a button it will play the shruthi. The different shruthis' are prerecorded and like a tape-recorder, by switch of a button it will play. Both Tabala and Shruthi box have varied buttons to change the shruthi and the tunes. It is the contention of the assessee that above said instruments are Indian Musical Instruments and attract 4% tax as per Schedule (2), item No. 15(1) of the Karnataka Sales Tax Act, 1957. The Department per contra takes a view that it is only a musical instruments and does not conform to the standards, appearance and shape of the Indian musical instruments. On the other hand contends that the instruments are electrical instruments and attracts tax as per Item No. 15 (i) of Schedule 2 Part M of Karnataka Sales Tax Act, 1957. The Assessing Officer has assessed to tax as Indian Musical Instruments and later on gave a notice to the assessee for reassessment. The Assessing Officer pursuant to the reply given by the assessee dropped the proceedings. The Joint Commissioner of Commercial Taxes (Administrative and Recovery -- 1) exercising suo-muto power held that the above instruments are electronic instruments and does not deserve any concessional tax as Indian Musical Instruments.

(2.) The Tribunal in appeal has held that the above instruments are Indian Musical Instruments and not electronic instruments. The department aggrieved by the order has filed this revision.

(3.) This Court permitted the parties to present the music experts to give their opinion. On behalf of the Government, Sri V.V. Radha Krishna, M.A. in Hindustani music, Sri Shiva Kumar Itagi, Engineer in B.E. Electronics and having proficiency in the knowledge of music and one Smt. S.L. Rashmi, a vocalist in Karnataka music. Upon observations of the said instruments which was demonstrated and played in the Court opined that the Shruthi Box and the Tabala have prerecorded music in integrated chips. The vocalist can use the said instruments by a switch of a button. It is their opinion that the above instruments fitted with electronic gadgets have an element of total perfectness in its sound and performance and the said electronic gadgets overcome the defects in skill of the player of the instrument. It is also said that the Tabala and the Shruthi box are basically used by the musicians in their practice they are not used in the public concerts. It is said that a vocalist who is practicing music would find it difficult to have a person who should play a Harmonium and Tabala to facilitate the practice. Therefore, the need of Harmonium player and Tabala player is done away by these instruments. A vocalist can practice music with Tamboora and Veena. It is their opinion that the normal human skills of a proficient musician is required to play these instruments and there is no pre-recorded chips in the said instruments.