We brought Iron/steel racks which will be used in stores and assembly section. In books of account we have capitalized under plant and machinery block as per company act. whereas in Karnataka entry tax act, plant and machinery defined as plant and its accessories, parts is liable to entry tax, based on this definition racks will not come in plant and machinery hence no entry tax on racks.
Kindly put your valuable opinion on the above contention.
20 September 2011
Mr.Lokesh, Steel racks can not be treated as any kind of plant and machinery as per common usage or dictionary meaning.The goods should be used in a production process or work by application of power. Then only it can be called a plant and machinery.Therefore steel racks are not liable for entry tax. MJK
20 September 2011
thank you so much for your valuable replay, kindly send us supporting case law which will help a lot to take right decision. once again thanks for valuable time.
20 September 2011
Mr Lokesh BV, As i wrote to you in the previous instance,a machine or plant is a device/contrivance which is used to do work or process with the help of power supplied to it. In the case laws also they have relied upon the definition given in dictionaries and wikipedia or an encyclopedia. I have not come across a case in which a specific effort has been made by the Courts to define it. MJK
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