1977 (8) TMI 142 - HC - VAT and Sales Tax

Summary

Issues involved: Determination of whether copper wire can be considered a component part of electrical transformers for the purpose of availing concessional tax rate under section 5(3) of the Kerala General Sales Tax Act, 1963.

Summary:
The High Court of Kerala addressed the issue of whether copper wire qualifies as a component part of electrical transformers for tax purposes. The assessee, a dealer in copper wires, sold these wires to a company for use in manufacturing transformers. To avail the concessional tax rate, the goods sold must fall within the First Schedule of the Act. The relevant entry in the First Schedule pertains to electrical goods, including component parts. The court considered previous judgments on what constitutes a component part, emphasizing that it must be an identifiable object integral to the final product. While copper wire is essential in making transformers, it does not have a distinct identity as a component part. Therefore, the court upheld the decision that copper wire is not a component part of electrical transformers, and the tax revision case was dismissed with costs.