P. N. BHAGWATI, J. M. SHELAT, J.

( 1 ) THE short question that arises on this Reference is whether L type Industrial Centrifugal Humidifiers complete with electric motors of 3/4 H. P. and starters fall within Entry 15 of Schedule C of the Bombay Sales Tax Act 1959. The applicants made an application to the Deputy Commissioner of Sales Tax under sec. 52 of the Act to determine the rate of tax payable on the sale of humidifiers. The contention of the applicants was that humidifiers are machinery used in the manufacture of cloth and are therefore covered by Entry 15 of Schedule C. This contention was however negatived by the Deputy Commissioner of Sales Tax. The Deputy Commissioner of Sales Tax described the role of humidifiers in the textile industry in the following words:"the humidifiers are used by the textile mills. The purpose of this is to maintain the humidity of a particular room where the process of spinning etc. is done. This humidity helps to increase the length and strength of yarn. According to the learned representative without humidifiers it is not possible for any of the textile mills run according to the modern technique to run their mills. In order to give a clear id

Click Here to Read the rest of this document