The State of Andhra Pradesh vs Power and Industrial Equipment and Accessories

The question for consideration in this batch of revisions is, whether radiators used in manufacture of transformers can be called electrical goods or in the alternative whether they can be called accessories of electrical goods within the meaning of entry 38 of the First Schedule to the Andhra Pradesh General Sales Tax Act, as it stood at the relevant time. During the assessment years concerned, entry 38 read as follows :

"All electrical goods, instruments, apparatus and appliances including fans and lighting bulbs, electrical earthenware and porcelain and all other accessories excluding electric motors."

The Tribunal found that the radiators manufactured by the dealer herein are used in manufacturing the transformers. Radiators by themselves do not fall within entry 38. They would fall within entry 38 provided they are electrical goods or electrical instruments or electrical apparatus or electrical appliances. The other situation in which they would fall within the entry is, if they are treated as accessories of any of the above goods. In our opinion it is difficult to call the radiator of a transformer as electrical goods, instrument, apparatus or appliance. The radiator is meant to cool the transformer when it is functioning. From the material placed before us it appears that the radiator in a transformer performs the same function as the radiator in a motor car engine. Thus, radiator is an integral part of a transformer. In such a situation the radiator by itself cannot be treated as an electrical goods, instrument, apparatus or appliance.

The next question is, whether it can be treated as an accessory of an electrical goods, instrument, apparatus or appliance. In other words the question would be whether the transformer can be treated as an electrical goods, etc., within the meaning of the entry. We may assume for the sake of argument that the transformer can be treated as an electrical goods, instrument, appliance or apparatus. Still the question would be whether the radiator can be treated as an accessory. Applying the well-known meaning assigned to the expression "accessories" by this Court and other courts, it would be evident that the radiator cannot be treated as an accessory. It is an integral and essential part of the transformer. It would, therefore, be not an accessory. The Deputy Commissioner has observed that even without a radiator a transformer can function, though for a much shorter period. This is taking very unrealistic view. For that matter even a motor car can run without a radiator for a short distance. But, then it would heat up and get bogged down. Same must be the situation with a transformer. We must take a normal functioning transformer and see whether it can function properly without a radiator. The Deputy Commissioner has not stated that a transformer can function in the normal course without a radiator.

In the circumstances, we are of the opinion that the Tribunal was right in holding that the radiators cannot be taxed under item 38 as it stood then, but it must be taxed as general goods u/s 5(1). The revision accordingly fails and it is dismissed. No costs. Advocate''s fee Rs. 600.

Petition dismissed.