9911796707
TMI Blog1952 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicants are a firm of contractors to supply the traffic signals to the Police Department and also number plates to the owners of the vehicles who charge the flat rate price of Rs. 45 for a traffic signal and Rs. 2 for a number plate. Since neither wages nor the cost of installation are shown separately but are included in the sale price of the contracted articles we think there is nothing in the first point and neither wages nor the cost of installation can be deducted from the tax- able turnover. Regarding the second point that the number plates for the motor vehicles are not accessories and ought to be charged at the general rate we think the applicants' contention is correct. It is argued for the Department that the number pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpretation of the entry. We think that the number plates ought to be charged at the general rate of 1/2 anna in the rupee. We must reverse the order of the learn- ed Collector of Sales Tax and modify that of the Assistant Collector by reducing the special tax by half the amount and the corresponding reduction will follow in the amount of penalty under Section 12(3)(A). The tax assessed by the Assistant Collector at the special rate is Rs. 2,677-10-0 and half of the amount ought to be refunded to the applicants and the penalty imposed is Rs. 365-3-0, which will be reduced by Rs. 119-6-0. The Assistant Collector has already ordered a refund of Rs. 492-14-0 as the amount paid in excess. The total refund therefore will be (Rs. 1,338-13-0 plus R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o motors but they have no connexion with their engines or transmission or bodies. Unless they are so connected, it is impossible to treat them as accessories. They are attached to a motor, but this is done because Section 28 of the Motor Vehicles Act requires this to be done, obviously to facilitate traffic control and identification if not other police purposes. These are purposes extra- neous to the use of motor vehicles. I am of opinion that the number plates cannot be treated as accessories. With due deference to the Department, we must say that the contrary opinion expressed at page 228 of the Bombay Sales Tax Hand Book is not correct. I hold that the number plates in common with traffic signals are liable to sales tax at the general r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
