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Sarvjeet Singh v. Special Secretary (Excise), Govt. Of U.P. & Others - WRIT TAX No. 66 of 2007  RD-AH 23 (1 January 2007)
Court No. 30
TRADE TAX REVISION NO. 66 OF 2007
S/s Agarwal Electric Agency,
Vishweshwar Ganj, Machodri, Varanasi- Applicant
The Commissioner, Trade Tax U.P.
Lucknow - Respondent
Hon'ble Sunil Ambwani, J.
Heard Shri Alok Kumar, learned counsel for applicant and learned standing counsel for the department.
In this trade tax revision relating to the assessment year 1994-95, there is no dispute with regard to turn over and maintenance of accounts. The Assessing Authority by his order dated 28.3.1998 assessed the rate of tax applicable to import and sale of stabilizers @ 5%. In appeal, the Deputy Labour Commissioner partly accepted the appeal and reduced the rate of tax to 2% giving benefit of Government notification dated 7.9.1981 as amended on 1.10.1994 in which item No. 74 (a) 'electronic components' is to be taxed @ 2%. In the second appeal the Tribunal has followed the judgment in Commissioner, Trade Tax, U.P. vs. S/s Parikh Gramodog Sansthan, Moradabad 2003 UPCT 603 in which the voltage stabilizers were treated 'electronic goods', and allowed the appeal.
Learned counsel for applicant submits that 'electronic components' in the entry 74 (a) of the notification dated 1.10.1994 as it include 'line output transformer' and 'power supply devices' and that 'stabilizer' falls within the entry.
The argument is wholly misconceived. The Entry 74 (a) deals with 'electronic components' and not 'electronic goods'. This entry further specifies that the 'electronic components' and includes all types of passive components and active components. The 'line output transformers' and 'power supply devices' are included in the entry as part of the electronic goods. Whenever line output transformer or power supply devices is used as component (part) of the goods it is to be treated and has to be taxed at a lower rate of 2%. The components of something are the parts that it is made of (Collins, Cobuild Advanced Learners English Dictionary) In the present case, the applicant is not dealing with the stabilizer as components of any other unit. There was as such no question of treating 'stabilizer' as 'electronic component'. The Assessing Authority and the Tribunal have rightly assessed it as 'electronic goods' and have imposed tax under entry 74 (a) (iii) which includes 'all other electronics goods not specified anywhere else in the schedule or any other notification'.
The revision is accordingly dismissed.
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