BPL LIMITED HYDERABAD Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This batch of Tax Revision Cases arise under The Andhra Pradesh General Sales Tax Act (hereinafter referred to as 'the APGST Act'). In these cases, there is an important question regarding the levy of sales-tax on the sale of washing machines sold by M/s. BPL Limited.

(2.) In 2 cases, orders were passed by the Assistant Commissioner (CT), Intelligence, Abids Division, Hyderabad, while in other 5 matters final assessment orders were passed by the Commercial Tax Officers of Chikkadpally and Ashoknagar Circles of Hyderabad. The said authorities had passed orders levying the sales-tax at the rate of 10% as against the exigibility at the rate of 4% claimed by the assessees. 7 appeals were preferred to the Appellate Deputy Commissioner (CT), Hyderabad Division, but the said levy was upheld. Further appeals were filed before the Sales Tax Appellate Tribunal, which also by its common order dated 16-4-1996 upheld the assessment of tax by the authorities below. Hence, these Tax Revision Cases.

(3.) The assessees are dealers in washing machines, which are either fully automatic or semi-automatic. The dispute with regard to the quantum of levy of sales-tax is related to fully automatic washing machines, It is the plea of the assessees that since auto control is accomplished by using computer units, the fully automatic washing machine can no longer be classified along with an ordinary electric washing machine under Entry 38(iv) of the First Schedule to the APGST Act and that it has to be classified as 'electronic goods' for exigibility at concessional rate by virtue of Government Memo N0.23718/CT-II/89, dated 1-6-1989. The question arises is as to whether the fully automatic washing machines are to be classified as electronic goods for eligibility for concessional rate under APGST Act and Central Sales Tax Act. The assessees had paid the tax at 4% on the ground that the automatic washing machines come within the ambit of 'electronic goods'. It is needless to mention that if the automatic washing machines come within the ambit of electronic goods, then, as a necessary corollary, it attracts concessional rate of 4%. Otherwise, the levy of 10% sales tax as done by the authorities has to be affirmed.