IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN MONDAY, THE 9TH JUNE 2008 / 19TH JYAISHTA 1930 OT.Appl..No. 4 of 2003() ------------------------ AGAINST THE ORDER DATED 04/10/2002,NO..C3.64841/01/CT of COMMR. OF COMMERCIAL TAXES, TRIVANDRUM .................... APPELLANT/PETITIONER --------------------------- K.THOMAS CHERIYAN, PROPRIETOR, VATTAKUNNEL AGENCIES, COLLECTORATE P.O., KOTTAYAM-686 002. BY ADV. SRI.V.V.ASOKAN SRI.SUNIL SHANKER RESPONDENT/ RESPONDENTS: ------------- THE COMMISSIONER OF COMMERCIAL TAXES, THIRUVANANTHAPURAM. SHRI.TEKCHAND, GOVERNMENT PLEADER THIS OTHER TAX APPLICATION HAVING BEEN FINALLY HEARD ON 09/06/2008, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: OTA NO.4/2003 ORDER ON I.A.NO.2735/2003 IN OTA NO.4/2003 DISMISSED. SD/- (C.N.RAMACHANDRAN NAIR, JUDGE) 09/06/2008 SD/- (V.K.MOHANAN, JUDGE) //TRUE COPY// PA TO JUDGE. jg C.R. C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. ------------------------- O.T.A.No.4 of 2003 --------------------------------- Dated, this the 9th day of June, 2008 J U D G M E N T Ramachandran Nair, J. Heard learned counsel appearing for appellant and learned Government Pleader. 2. Order under challenge is clarification issued by the Commissioner of Commercial Taxes clarifying that the labeling equipment sold by the appellant answers the description of “machinery” falling under Entry 84(1) of I Schedule to the KGST Act. Learned counsel for appellant contended that the item is only an equipment to print price of a product on the label to be fixed on the cover of the product. During hearing, learned counsel for appellant produced sample of the item marketed by appellant. We find that one side gum pasted paper roll is loaded in it and what the machine dose is printing the figures or letters on the label. It is a simple device like a rotating seal or a stapler. The items of machinery referred under Entry 84(1) are internal combustion engine, marine engine, diesel generating set, diesel engine etc. We O.T.A.No.4/2003 -2- do not think the simple equipment used for printing the price on the label can be equated to any of these items of machinery referred to under Entry 84(1) of the Act. In common parlance, nobody will treat a stapler or a rotating seal or a label printing device like this as machinery. We, therefore, allow the appeal by quashing Annexaure A order of the Commissioner and hold that the item is taxable under the residuary entry and not under Entry 84(1) of I schedule to the KGST Act. (C.N.RAMACHANDRAN NAIR, JUDGE) (V.K.MOHANAN, JUDGE) jg