1995 (3) TMI 440 - HC - VAT and Sales Tax

Summary

The High Court of Madhya Pradesh ruled in favor of the assessee, M/s. Shankar Motor Stores, stating that axles sold by them are covered under entry 1 of Part I of Schedule II of the M.P. General Sales Tax Act, not as spare parts of motor vehicles. The Court emphasized that goods of special importance mentioned in section 14 of the Central Sales Tax Act are to be taxed under entry 1 of Part I at a concessional rate of 4 percent. The tax authorities were deemed correct in their classification of axles.