Fully-automatic washing machines are electronic items -- SC

Fully-automatic washing machines are electronic items -- SC
PRESS TRUST OF INDIA

NEW DELHI, JAN 18: In a major concession to consumer goods manufacturers, the Supreme Court has ruled that fully-automatic washing machines can be termed as "electronic goods", entitling them for a lower rate of sales tax.

A three-judge bench headed by Justice B N Kirpal said fully-automatic washing machines qualified to be electronic goods as provided under the Andhra Pradesh Government's 1988 and 1993 notification charging lower sales tax as its functions, were controlled by micro-processors.

"The entire functioning of the washing machine is automatic. Data is fed into the machine and thereupon it is the micro-processors which control and direct the carrying out of the various functions of the machine which results in the clothes being washed in the desired manner," said the bench of Justice Kirpal, Justice Ruma Pal and Justice Brijesh Kumar.

The bench said the underlying object of the state in issuing such a notification was to give a fillip to modern technology as a result of which consumer electronics or electronic appliances or equipment operating in electronic principles were to be charged lesser sales tax.

The High Court had ruled against BPL Ltd and Whirlpool India Ltd saying while the control panel of such machines was certainly electronic, the washing machine itself did not operate on the principle of electronics.