ZENITH COMPUTERS LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) By this reference under section 61(1) of the Bombay Sales Tax Act, 1959 , made at the instance of the assessee, the Maharashtra Sales Tax Tribunal has referred the following questions of law to this Court for opinion :

(2.) The assessee is a manufacturer of computers. It is registered as a dealer under the Bombay Sales Tax Act, 1959 ("the Bombay Act") as well as the Central Sales Tax Act, 1956 ("the Central Act"). For the period from May 1, 1986 to April 30, 1987, it was assessed both under the Central Act and the Bombay Act by the Assistant Commissioner of Sales Tax (Assessment) by his orders of assessment dated March 20, 1990. In its assessment order under the Central Act, the Assistant Commissioner rejected the claim of the assessee for being assessed in respect of the sales of computers made to educational institutions at the concessional rate of tax applicable to sales of scientific equipments and instruments to educational institutions, etc., by virtue of the notification issued by the State Government under section 8(5) of the Central Act. According to the assessee, the computers sold by it in the course of inter-State trade or commerce to educational institutions for use in the teaching of science and to laboratories or institutions which carried on research work for the promotion of scientific or educational object were scientific equipments and instruments covered by the said notification. The Assistant Commissioner did not accept the above contention of the assessee, as he was of the opinion that the benefit of the above notification was available only in respect of sales of scientific equipments and instruments falling under entry 33 of part II of Schedule C to the Bombay Act and not on sales of computers falling under entry 97(a) of Part II of Schedule C. He, therefore, rejected the claim of the assessee to the assessed at the concessional rate of tax in respect of the sales of computers. While doing so, he made the following observations :

(3.) The question that falls for our determination in this reference is whether computers sold by the assessee can be regarded as scientific instrument or equipment falling under notification dated January 21, 1972, issued by the State Government under section 8(5) of the Central Sales Tax Act, 1956 . To decide the same, it is necessary to peruse the said notification, which is set out below :