A two-judge bench of the Bombay High Court has held that the Hybrid Amplifier sold by the Assessee would fall within the residuary entry of Schedule Entry C-II-126 under the Bombay Sales Tax Act.
A bench of Justices B. P. Colabawalla and S. C. Dharmadhikari was hearing an appeal by the assessee M/s Khush Bhakht Electronic Engineers Pvt. Ltd, who is engaged in the manufacture and sale of Hybrid Amplifiers and other electronic instruments.
Schedule Entry C-II-124 which deals with TV Sets, Antennas etc. and their accessories or whether the same would fall within Schedule Entry C-II-126 which deals with the electronic systems, instruments and appliances and components, parts and accessories of any of them.
The bench noted that the Hybrid Amplifier basically boosts the signal, be it for the purpose of transmission of Cable TV or for several other purposes as set out by us earlier.
“This being the position, we agree with the finding of the MSTT that the impugned product viz. Hybrid Amplifier has got a totally different function and it has no function akin to an antenna as was held by the Commissioner in his DDQ order. We do not find that this Hybrid Amplifier can be classified under Schedule Entry CII-124 as it is neither a TV set, TV Camera, TV Receiver, TV Monitor, antennas and components, parts and accessories of any of them. It is a stand alone active device for the purpose of boosting weaker signals and is comprised of all electronic components and parts. In these circumstances, to our mind at least, it would squarely fall within Schedule Entry C-II-126 which deals with electronic systems, instruments and appliances and components, parts and accessories of any of them. Merely because the impugned product can also be used for the purpose of boosting Cable TV signals would not alone justify its classification under Schedule Entry C-II-124,” the bench said.
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