- (1.) M. C. AGARWAL, J. These two revision petitions under section 11 of the U. P. Trade Tax Act, 1948 are directed against a common order dated March 9, 1995 passed by the Trade Tax Tribunal, Ghaziabad in the dealer's second appeals for assessment years 1987-88 and 1988-89 being Second Appeal Nos. 645 of 1994 and 644 of 1994.
(2.) I have heard Sri Piyush Agrawal, learned counsel for the revisionist and Sri Surya Prakash, learned Standing Counsel for the respondent. The only dispute arising in these revision petitions is about the classification of power driven water pumps manufactured by the revisionist. Such pumps are used to lift water through a pipe to a height of about 1 to 1. 5 metres and then the water can be allowed to flow in any direction. According to the finding recorded by the Tribunal, such pumps are mainly used as a components of water-coolers and it has held their taxability under entry No. 57 of a Notification No. S. T.-2-5784/x - 10 (1)-80-U. P. Act 15/48-Order-81 dated September 7, 1981. The said entry is as below : " 57. Refrigeration and air-conditioning plants and all kinds of refrigerating appliances and equipments, including refrigerators, deep-freezers, mechanical water-coolers, room-coolers, air-conditioners, air coolers, bottle-coolers, walk-in coolers, and components, parts and accessories thereof and refrigeration materials including polystyrene foam. " On the other hand the revisionist contends that the water pump in question falls under item No. 38 of the Notification No. S. T. 11-6562/x-6 (8)-85-U. P. Act-XV-48-Order-86 dated September 12, 1986 which is as under : " Machinery and spare parts of machinery, including water pumps and pumping-sets not being such machinery or spare parts thereof as are taxable under any other item of this Schedule. "
(3.) ADMITTEDLY what the revisionist is manufacturing is a pump known as a water pump though it can be used for lifting any other liquid like milk, kerosene oil, etc. , etc. Therefore, the water pump directly and specifically falls within the scope of entry 38. The authorities below have, however, taken the view that being used as a components of a water-cooler, the water pump falls under entry No. 57 being a component or part or accessories of water-coolers. This view, in my view, is not correct. To fully appreciate the point, entry No. 57 should be read as a whole to contemplate what is the nature of things that could be covered by item No. 38. This entry deals with the refrigeration and air-conditioning plants and appliances. Therefore, the mechanical water-coolers, room-coolers, air coolers, etc. , that are mentioned in the said entry, have to be those that worked on the refrigeration and air-conditioning system. The pump in question is an ordinary electrical pump that lifts a liquid and is mostly used in a desert cooler which is neither a refrigeration nor an air-conditioning equipment. It is a common man's water cooler in which air is passed through water flowing through sieves of wood-wool, etc. No refrigeration or air-conditioning system as we understand it in relation to refrigerators, air-conditioners, deep freezers, etc. , is involved. Therefore, the water pump that is specifically mentioned in item No. 38 cannot be dragged in item No. 57 and treated as a part of a wholly heterogeneous class of things. I, therefore, hold that the water pumps in question were taxable under item No. 38, referred to above, and have been wrongly taxed under item No. 57. The Tribunal's order is, therefore, set aside and the Tribunal is directed to pass consequential orders on the assessee's appeals, in accordance with this judgment. The revision petitions stand allowed. Petitions allowed. .;