COMMISSIONER OF SALES TAX Vs. SIEMENS INDIA LIMITED

JUDGEMENT

(1.) THESE two Sales Tax References (Nos. 13 and 14 of 1981) have been made at the instance of the Commissioner of Sales Tax as well as the assessee under section 45 of the Delhi Sales Tax Act, 1975. The reference is consequent to the order of the Tribunal dated 6th November, 1980, whereby the learned Tribunal had held that electric motors sold by the assessee were exempt from sales tax. The question referred to us at the instance of the Commissioner, Sales Tax, is as follows : " Whether electrical motors other than that of 3 to 7 1/2 h. p. fall within the ambit of entry No. 17 to the Third Schedule of the Delhi Sales Tax Act, 1975, and the sales thereof were exempt from the levy of sales tax ?"

(2.) THE question referred at the instance of the dealer is as follows : " In case electric motors other than that of 3 to 7 1/2 h. p. are held as falling under entry No. 17 to the Third Schedule of the Delhi Sales Tax Act, were they covered by entry No. 15 to the First Schedule of the Act or were they parts of industrial machinery as given in entry No. 27 of the notification dated 21st October, 1975 ?"

(3.) IN J. B. Advani-Oerlikon, Electrodes Pvt. Ltd. v. Commissioner of Sales Tax, M. P. [1972] 30 STC 337, the question was whether electrodes used for welding purposes were electrical goods. These electrodes were rods carrying electricity. It was held that they were not electrical goods because to be electrical goods two things were necessary - (a) that it should not be capable of being used without electricity, and (b) by its very nature it could be described as electrical goods. IN State of Tamil Nadu v. Blue Star Engineering Co. Madras Private Limited [1977] 39 STC 194, the problem was whether a duplicating machine was "electrical goods". The problem was answered by the fact that there was a specific entry dealing with duplicating machines. It was held that where there is a specific entry, the same must be applied and the general entry must be excluded. IN Sri Sakthi Textiles Ltd. v. State of Tamil Nadu [1979] 43 STC 404, the question was whether a cone-winding machine fitted with an electric motor was included in the term "electric goods". It was held that it was not sufficient that the machinery should be usable by electrical energy, it should also be such, that it would come within the description of electrical goods. So, the article, a cone-winding machine, was treated as not being electrical goods. The Orissa High Court held in State of Orissa v. Rama Engineering and Manufacturing Works [1976] 37 STC 182, that electric motors were included in the term "electrical goods".