1976 (3) TMI 202 - HC - VAT and Sales Tax

Summary

Issues:
1. Classification of leakproof or dry-cell batteries under the Kerala General Sales Tax Act, 1963.
2. Classification of cinema arc carbons under the same Act.

Issue 1:
The High Court of Kerala considered whether leakproof or dry-cell batteries are spare parts or accessories of radios and transistors under item 12 of the First Schedule of the Kerala General Sales Tax Act, 1963. The Sales Tax Appellate Tribunal held that the batteries fell under item 26, which covers "all electrical goods." The Tribunal found that the batteries were essential for various purposes and not merely spare parts or accessories of wireless reception instruments and apparatus.

Issue 2:
Regarding cinema arc carbons, the Tribunal classified them under the residuary clause, section 5(1)(ii), as general appliances used for various purposes. The High Court analyzed various decisions and principles related to the classification of parts and accessories. It was concluded that the arc carbons, although labeled as cinema carbons, were general goods falling under section 5(1)(ii) and not specifically as parts or accessories of cinematographic equipment.

The Court emphasized the commercial sense and popular meaning of the terms in question, as well as the actual use of the commodities. It was noted that leakproof batteries and arc carbons are not commonly regarded as parts or accessories of transistors or projectors, respectively. The Court disagreed with the reasoning of previous decisions and held that the batteries and arc carbons are used for various purposes beyond transistors or projectors, leading to the dismissal of the tax revision case.

In conclusion, the High Court of Kerala dismissed the petition, maintaining that leakproof batteries and arc carbons are not to be classified as parts or accessories of transistors or cinematographic equipment under the Kerala General Sales Tax Act, 1963.