TRIVENI CONDUCTORS LTD Vs. COMMISSIONER OF COMMERCIAL TAX

JUDGEMENT

(1.) THIS petition has been filed under article 226 of the Constitution of India, against the order dated October 20, 1995, passed by respondent/commissioner of Commercial Tax, Indore, whereby, it has been held that super enamelled copper winding sire (S. E. C. W.) falls in the category of electrical goods, consequently rate of commercial tax has been fixed at 10 per cent.

(2.) BRIEF facts for deciding the said petition are given hereinbelow : The petitioner is a public limited company, incorporated under the provisions of the Companies Act, 1956. It has its registered office at Indore. Petitioner is a registered dealer under the M. P. General Sales Tax Act, 1958 and continues to be so under the M. P. Vanijyik Kar Adhiniyam, 1994. Petitioner is also a registered dealer under the Central Sales Tax Act, 1956. Petitioner carries on business of manufacture and sale of S. E. C. wire (for short "enamelled wire" ). Contention of the petitioner is, that as per notification dated March 31, 1992, issued by State Government under section 12 of the M. P. General Sales Tax Act, 1958 (Repealed Act), the rate of sales tax on this commodity was fixed at 6 per cent. This rate of tax, was enforced from April 1, 1992 to March 31, 1995. M. P. Vanijyik Kar Adhiniyam, 1994 also known as M. P. Commercial Tax Act (for short "the Act of 1994") came into force with effect from April 1, 1995, after repeat appeal of M. P. General Sales Tax Act. According to the petitioner, the rate of tax on enamelled wire has not been declared specially by the State Government by notification issued under section 17 of the Act of 1994. Therefore, the petitioner preferred an application under section 68 of the Act of 1994 to the respondent for determination of the rate of tax applicable to such enamelled wire.

(3.) ON show cause notice being issued to the respondent, it has filed its reply in oppugnation. It has been submitted, that petitioner is engaged only in the business of manufacturing and sale of enamelled wire and it is not a dealer in motors or machines. It has been submitted that it is not the ultimate product which can be tested for determination of rate of tax, but, there are other factors which are to be tested into consideration. It has further been urged that motors and machines are different than enamelled wire. Respondent, therefore, has prayed that the impugned order be upheld and petition be dismissed.