STATE OF GUJARAT Vs. SUKAN INDUSTRIES

JUDGEMENT

(1.) THE assessee-firm manufactures and sells domestic flour mills. It does not, however, manufacture electric motors required for supplying motive-power to such flour mills. An application was made by the assessee under section 62 of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act"), for the determination of the question as to what was the correct rate of tax payable on the sales of its domestic flour mills not fitted with electric motors. THE assessee contended that the flour mill in question was covered by entry 16 (1) of Schedule II - Part A, that is to say, it was machinery used in the manufacture of goods. THE Deputy Commissioner of Sales Tax, who heard the said application, rejected the contention of the assessee and held that the flour mill was a domestic electrical appliance covered by entry 92 of Schedule II - Part A. Against the aforesaid determination of the Deputy Commissioner of Sales Tax, the assessee preferred an appeal to the Gujarat Sales Tax Tribunal (hereinafter called "the Tribunal" ). THE Tribunal reversed the decision of the Deputy Commissioner of Sales Tax and, accepting the contention of the assessee, held that the domestic flour mills (without in-built electric motor) sold by the assessee were covered by entry 16 (1) of Schedule II - Part A and not by entry 92 of Schedule II - Part A. THE revenue thereupon moved the Tribunal to state a case in respect of the question of law arising out of the decision and, accordingly, the Tribunal has referred the following question for the opinion of this Court : " Whether, on the facts and in the circumstances of the case, the domestic flour mill (without electric motor fitted to it) sold by the opponent is covered by entry 92 of Schedule II - Part A to the Gujarat Sales Tax Act, 1969, as held by the learned Deputy Commissioner or entry 16 (1) of Schedule II - Part A to the said Act as contended by the opponent ?"

(2.) THE two entries with which we are concerned herein may be first set out : " 16. (1) Machinery used in the manufacture Three paise Three paise of goods excluding machinery in the in the specified in any other entry in rupee. rupee. this or any other schedule. " 92. Domestic electrical appliances Thirteen Thirteen including electric fans and paise in the paise in fluorescent tubes (including rupee. the chokes, starters, fixtures and rupee. " fittings and accessories) and other parts appertaining to such appliances but excluding bulbs.

(3.) THE question as to what is the true meaning of the word "appliances" came up for consideration before this Court in Star Radio Electric Co. v. Commissioner of Sales Tax ([1971] 27 S. T. C. 367. ). Considering the meaning assigned to the said word in different dictionaries and standard books, it was held that : (1) an "appliance" is distinct from the "materials" from which it is made and (2) and "appliance", as an apparatus, device or instrument, is "a means to an end". It was there pointed out that its service "as a means to an end" is its main feature which would bring an article within the definition of the word "appliances". In other words, the article should be capable of rendering the desired service. THE article with which the court was there concerned was a fluorescent tube without its accessories, namely, choke and starter, and the question was whether it was a "domestic electrical appliance" within the meaning of entry 52 of Schedule B of the Bombay Sales Tax Act, 1953. It was observed that the service which is rendered by a fluorescent tube light is to produce light having coloured luminosity. THErefore, if a starter and choke are found essential for obtaining the desired service, namely, dispelling of darkness and supply of fluorescent light through the fluorescent tube, then a fluorescent tube without a starter and a choke cannot fall within entry 52 of Schedule B. THE real test which requires to be applied in determining the question as to whether an article can be said to be an appliance, therefore, is the utility of such article to serve the object for which it is produced.