R.R.Misra, J. - (1.) These two revisions have been filed by the Commissioner of Sales Tax, U. P., Lucknow against a common order dated 16th May, 1986 passed by the Sales Tax Tribunal in regard to assessment years 1977-78 and 1980-81.
(2.) During the assessment years in question the assessee was dealing in carbon bushes. In both the years the disclosed turnover of the assessee was accepted. The only point at which parties were at issue was as to what should be the rate of tax payable on carbon bushes. The Sales Tax Officer assessed the turnover of the assessee at 11 per cent holding that these bushes are electrical goods. The Assistant Commissioner (Judicial), however, allowed the appeal filed by the assessee and held these carbon bushes as unclassified items taxable at 8 per cent. Feeling aggrieved, the Commissioner of Sales Tax filed appeals before the Sales Tax Tribunal for the aforesaid two years, which have been disposed of by the Sales Tax Tribunal by the aforesaid impugned order.
(3.) I have heard learned Counsel for the parties. Learned Standing Counsel has during the course of his arguments laid stress on the fact that carbon bushes are "accessories" and "components" of electrical goods and are taxable as such and that the Tribunal is in error in holding to the contrary. His submission is that although the Tribunal has factually accepted that carbon bushes are used as electrical goods but it held that the same are to be taxed as unclassified items. No specific reason has been assigned by the Tribunal for the same in its impugned order but it has only relied upon the order passed by the Assistant Commissioner (Judicial) on this behalf. The view taken by the Assistant Commissioner (Judicial) was that these carbon bushes are utilised in water lifting pumps, etc., and, therefore, they cannot be taxed as electrical goods. Learned Standing Counsel has relied upon the three notifications, i.e., Notification No. ST-II-2956/X--6(17)-76, dated 20th May, 1976, Notification No. ST-II-7218/X-- 6(43)-77--U. P. Act XV/48--Order-77, dated 30th September, 1977 and Notification No. ST-II-10826/X--902(24)-48--U. P. Act XV/48--Order-79, dated 7th December, 1979. His submission is that the entry of electrical goods as mentioned in the aforesaid notifications include all accessories and components thereof. He has further relied upon a decision of the Supreme Court in the case of Annapurna Carbon Industries Co. v. State of Andhra Pradesh [1976] 37 STC 378. It has been held in the said case that "arc carbons" fall under entry 4 of Schedule I of the Andhra Pradesh General Sales Tax Act, 1957, inasmuch as that entry includes "parts" as well "accessories", which are required for use in projectors or other cinematographic equipment, and "arc carbons" are mainly used for production of powerful light used in projectors in cinemas as and are known as "cinema arc carbons" in the market. It has been further held that the fact that "arc carbons" can also be used for searchlights, signalling, stage lighting, or where powerful lighting for photography or other purposes may be required, could not detract from the classification to which the carbon arcs belong.;