1968 (2) TMI 108 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of tax entry for radio cabinets and loud-speaker cabinets under Bombay Sales Tax Act, 1959.

Analysis:
The case involved a reference to determine the tax rate applicable to the sale of radio cabinets and loud-speaker cabinets under the Bombay Sales Tax Act, 1959. The Commissioner of Sales Tax initially classified these items under entry No. 65 of Schedule C, but the Sales Tax Tribunal reversed this decision, placing them under the general residuary entry No. 22 of Schedule E. The key question was whether these items fell within the specific entry or the general residuary entry. Entry No. 65 of Schedule C included wireless reception instruments, apparatus, and radio gramophones, along with related components like batteries and amplifiers. The residuary entry No. 22 encompassed all goods not specified in other schedules. The contention was whether radio cabinets could be considered "spare parts" under entry No. 65, which was refuted based on the common parlance interpretation of "spare parts" as items for replacement due to wear and tear or emergencies. The court rejected the argument that radio cabinets were spare parts and concluded they fell under the residuary entry.

Regarding loud-speaker cabinets, the department argued they could be considered spare parts under the term "apparatus" in entry No. 65. However, the court found this argument lacking as the term "apparatus" in the entry referred to main instruments like wireless reception instruments and radio gramophones, not loud-speakers. The distinction between apparatus and loud-speakers in the entry indicated that loud-speakers were attachments to the main instruments, not spare parts. Consequently, the court held that loud-speaker cabinets also fell under the general residuary entry No. 22 of Schedule E. The court ultimately answered the reference by confirming that both radio cabinets and loud-speaker cabinets were covered by the residuary entry and did not fall within the specific entry of Schedule C. The applicants were directed to bear the costs of the reference.