1997 (9) TMI 549 - SC - VAT and Sales Tax

Interpretation of section 5(3) of the Kerala General Sales Tax Act, 1963 - Held that - Appeal dismissed. The basis upon which the assessee has proceeded thus far must, therefore, be held to be erroneous. The assessee has not chosen, at any time heretofore, to establish that the goods that he sold, namely, super enamelled copper wire, was a component part of a transformer, which was what the purchasing dealer would use the super enamelled copper wire for. In that situation, we have declined to peruse the material produced by learned counsel for the assessee at the Bar to show that transformers are electrical goods, which are goods mentioned in the First Schedule, and, more importantly, that super enamelled copper wire is an article which forms an identifiable constituent of a transformer, which, along with others, goes to make up the transformer and which is visually identifiable and is separable by a mechanical process.

Summary

The Supreme Court dismissed the appeal in a tax revision case regarding the interpretation of section 5(3) of the Kerala General Sales Tax Act, 1963. The selling dealer must establish that the goods sold are capable of being used as component parts of goods in the First Schedule to obtain the reduced tax rate of one percent. The assessee's contention was found to be erroneous as they did not establish that the goods sold could be used as component parts of goods in the First Schedule. The appeals were dismissed with costs.