STEELAGE INDUSTRIES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE Gujarat Sales Tax Tribunal at Ahmedabad, has referred the following question for the opinion of this Court under Section 69 of the Gujarat Sales Tax Act, 1969, ("the Act" for short), which has arisen out of its decision in Appeal No. 33 of 1991 decided by the Tribunal on May 14, 1993:

(2.) THE assessee is carrying on the business of manufacturing steel furniture, including fire and burglar resistant safe and safe deposit lockers. The assessee is registered as a dealer under the Act. It made an application on June 24, 1991 under Section 62 of the Act, for determination of the rate of tax payable on the sales of (i) fire and burglar resistant safe, sold under Invoice No. 33/31/0033 dated August 9, 1990, and (ii) safe deposit lockers sold under Invoice No. 33/31/0031 dated August 8, 1990. In respect of two products manufactured by the assessee, appropriate literature and pamphlets were produced and it was contended that these products, i. e. fire and burglar resistant safe and safe deposit lockers should be held to be covered by Entry 67 of Schedule II-A of the Act and taxed at the concessional rate of tax under Entry 212 of the Government Notification (as it stood at the relevant point of time) issued under Section 49 (2) of the Act. This contention of the assessee was negatived by the Deputy Commissioner on the ground that it was already decided in the case of Godrej and Boyce Manufacturing Company on March 13, 1991, that such products cannot be regarded as furniture. Accordingly, an order was passed by the Deputy Commissioner under Section 62 of the Act holding that fire and burglar resistant safe and safe deposit lockers were covered by Entry 13 of Schedule III to the Act and were liable to be taxed accordingly.

(3.) BEING aggrieved by the order of the Deputy Commissioner, the assessee preferred an Appeal before the Tribunal which was registered as Appeal No. 33 of 1991. After considering the provisions of Entry 67 of Schedule II-A, Entry 73 of Schedule II-A and various judgments cited by the parties, it was held by the Tribunal that as far as fire resistant filing cabinet, fire resistant record cabinet and fire and burglar resistant safe are concerned, they are articles of convenience or decoration used in the offices or public buildings or in industrial estates or banks. Therefore, it was concluded that the said articles are articles of furniture, and are exigible to concessional rate of tax under Entry 212 (as it then stood) of Notification issued under Section 49 (2) of the Act. However, as far as safe deposit lockers are concerned, the Tribunal took the view that the said products cannot be considered to be furniture and are therefore covered by the residuary Entry 13 of Schedule III of the Act (as it stood at the relevant point of time ).