SINGLA ELECTRIC STORE Vs. STATE OF PUNJAB

JUDGEMENT

(1.) BY its order dated September 2, 1986, the Sales Tax Tribunal, Punjab, has referred the following question for adjudication by this Court :

(2.) WE have heard learned counsel for the parties at length, have perused the record of the case and have gone through the relevant provisions of the Punjab General Sales Tax Act, 1948. At the very outset we may mention that a similar question was earlier referred to this Court and the same has been decided in Gupta Agencies v. State of Punjab [1994] 92 STC 543. After examining the provisions of the Act of 1948 and particularly entry 17 of Schedule "a" and after making reference to an earlier decision of this Court in Madan Lal Pawan Kumar v. Punjab State [1982] 49 STC 77 a Division Bench of this Court has held that electric motors are not electric equipment required for generation, transmission and distribution of electric power and, therefore, they are not covered by the excepted goods mentioned in entry 17 of Schedule "a" and the same are liable to tax at the rate of ten per cent and not six per cent as claimed by the dealer. Learned counsel relied on a decision of the Allahabad High Court in Commissioner, Sales Tax, U. P. v. Niazia Electric Works [1976] 38 STC 439 and of this Court in Karnal Machinery Store v. Assessing Authority, Karnal [1973] 31 STC 3 and argued that the decision in Gupta Agencies v. State of Punjab [1994] 92 STC 543 requires reconsideration by a larger Bench.

(3.) FOR the reasons mentioned above, the reference is answered in favour of the department and it is held that the electric motors do not fall within the ambit of excepted goods mentioned in entry 17 of Schedule "a" to the Punjab General Sales Tax Act, 1948 and the same are liable to sales tax at the rate of 10 per cent. Reference answered in favour of department.