STATE OF KERALA Vs. SIGMA INC

JUDGEMENT

(1.) Question raised in the revision filed by the State is whether speaker sold by the Respondent for fixing in cars attract sales tax at 12% under Entry 134 of the First Schedule providing for sound transmitting equipment including Loud speaker or Electronic goods under Entry 55 of the K.G.S.T. Act. We have heard Government Pleader appearing for the Petitioner and counsel appearing for the Respondent-Assessee. The assessment involved is for the year 2003-2004. The assesses is engaged in sale of car stereos along with speakers and car stereos and speakers separately. For the sale of stereos and sale of stereo with speakers, the classification applied by the officer is as electronic goods under Entry 55, on which tax is levied at 8%. However, for independent invoices covering sale of speakers, the Assessing Officer applied the rate at 12% provided in Entry 134 which covers sound transmitting equipments including loud speakers. The Tribunal, however, held that speakers are also electronic goods assessable under Entry 55 at 8% as claimed by the Respondent, against which revision is filed by the State.

(2.) The relevant Entries are the following: <table width="84%" height="300" border="1" align="center"> <tr> <td width="71%"><div align="center"><font face="Verdana"><strong>Description of goods </strong></font></div></td> <td width="15%"><div align="left"><font face="Verdana"><strong>Point of levy</strong></font></div></td> <td width="14%"><div align="center"><font face="Verdana"><strong> Rate of tax</strong></font></div></td> </tr> <tr> <td><font face="Verdana"> 134-Sound transmitting equipments including telephones, loudspeakers, dictaphones, gramaphone and similar apparatus for recording and reproducing sound and spare parts and accessories there of including gramaphone, spare parts, accessories and components and parts thereof.</font></td> <td><div align="left"><font face="Verdana">At the point of first sale in the State by a dealer who is liable to tax u/s 5.</font></div></td> <td><div align="center"><font face="Verdana">12%</font></div></td> </tr> <tr> <td><font face="Verdana">55- Electronic systems, instruments, apparatus and appliances other than those specified elsewhere in this Schedule and spare parts and accessories thereof. </font></td> <td> <div align="center"><font face="Verdana">do. </font></div></td> <td><div align="center"><font face="Verdana">8%</font></div></td> </tr> </table>