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1976 (9) TMI 169 - HC - VAT and Sales Tax
Issues: Interpretation of the A.P. General Sales Tax Act regarding the classification of "fare meters" as accessories of motor vehicles under entry 1 of Schedule I.
Analysis: The judgment delivered by the Andhra Pradesh High Court involved three tax revision cases concerning the classification of "fare meters" under the A.P. General Sales Tax Act. The disputed turnovers for the assessment years 1969-70, 1970-71, and 1971-72 related to the sales of "fare meters" by M/s. Choudhry Bros. The Deputy Commissioner of Commercial Taxes revised the tax rate from 3% to 10%, considering fare meters as accessories of auto-rickshaws. The Sales Tax Appellate Tribunal upheld the Deputy Commissioner's decision in three appeals filed by the assessee. The central issue in question was whether "fare meters" fell under entry 1 of Schedule I of the A.P.G.S.T. Act and whether they could be classified as accessories of motor vehicles. The court referred to the definition of "accessories" as provided by the Supreme Court in the case of A.C. Industries v. State of A.P., emphasizing that accessories are items that add to the beauty, convenience, or effectiveness of something else. The court noted that fare meters are primarily used to equip motor vehicles and auto-rickshaws used for hire, serving no other essential purpose beyond denoting fares. The court rejected the argument that fare meters were not necessary components for running motor vehicles, emphasizing that their predominant use as accessories for vehicles used for hire was the determining factor. Referring to the intention of the framers of entry No. 1 in the Act, the court concluded that fare meters qualified as accessories of motor vehicles and auto-rickshaws. Consequently, the tax revision cases were dismissed with costs, and the petitions were rejected. In summary, the judgment clarified the classification of "fare meters" as accessories of motor vehicles under the A.P. General Sales Tax Act, emphasizing their primary use in equipping vehicles used for hire. The court's decision was based on the interpretation of relevant legal provisions and the intention of the framers of the Act regarding the classification of accessories.
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