JACKARD MACHINERY WORKS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THE question of law which requires consideration in this reference is whether handloom (kargha) and its parts are machinery and machinery parts or unclassified articles. The reference relates to the assessment year 1965-66.

(2.) THE assessee carries on business in handloom machinery and its parts besides charkha, etc. The assessing authority accepted the turnover disclosed by the assessee. Up to 30th September, 1965, the turnover was assessed at 2 per cent as an unclassified item. With effect from 1st October, 1965, it was assessed as machinery at 6 per cent in view of the notification dated 1st October, 1965, issued under section 3-A of the U.P. Sales Tax Act. The assessee went up in appeal, but failed. Thereafter, he preferred a revision on the ground that handloom (kargha) sold by him was not machinery within the meaning of section 3-A and, as such, was not taxable at 6 per cent.

(3.) IT is undisputed that the article sold by the assessee is used for making handloom cloth out of yarn. It is manipulated by hand but the manual manipulation results in several parts of the article moving at the same time to convert yarn into a piece of cloth. The various processes involved in the making of the cloth happen mainly because one portion of the article is manipulated manually. The question is whether this article could be termed "machinery" within the meaning of the aforesaid notification. The Act, or the Rules, or the notification do not define the term "machinery".