9911796707
TMI Blog1973 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... firm dealing in manufacture and sale of oil engines and spare parts thereof. It is registered under the Bombay Sales Tax Act, 1959. It was assessed for two periods, viz., (i) 1st January, 1960, to 31st March, 1960, and (ii) 1st April, 1960, to 31st March, 1961, by separate assessment orders passed by the Sales Tax Officer, holding that oil engines and spare parts thereof are covered by entry No. 15 of Schedule C to the Act. The Assistant Commissioner of Sales Tax initiated suo motu revision proceedings against this assessment and held that the oil engines and spare parts thereof prior to the aforesaid respective dates were covered by the residuary entry No. 22 of Schedule E to the Act. Being aggrieved with the said order of assessment, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be considered sufficient to attract the tax under entry No. 15. The particular entry, in our opinion, covers those cases of machinery and accessories and spare parts, which are not specified in any other entry in Schedule C or those in any other schedule to the aforesaid Act. It is, therefore, a residuary entry for the purpose of these goods. However, it was contended on behalf of the revenue that though this is a residuary entry, none the less it has been circumscribed, inasmuch as all and every kind of machinery are not contemplated but those machineries which are used for purposes of manufacturing of goods are only envisaged to be covered under entry No. 15. It was, therefore, urged that unless the machinery is actually used for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture of such goods. Every item of machinery which has a use in the manufacture of finished goods, which plays some role in the process of manufacture of finished goods and without which manufacture of finished goods would not be possible would be machinery used in the manufacture of such goods. Such machinery would be an essential and integral part of the plant which manufactures finished goods and would certainly satisfy the description that it is machinery used in the manufacture of finished goods. If this test be applied, it is clear that humidifiers are machinery used in the manufacture of cloth......." There is no doubt, in our mind, that the oil engines are machinery. The next question is, whether they are such, that they can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are not useful for the purposes of construing the width and scope of entry No. 15 of Schedule C to the aforesaid Act, with which we are concerned here and which is, as stated, more or less a residuary entry as far as the case of machinery and other spare parts and accessories are concerned. The Tribunal was also right when it considered the development of this entry for purposes of appreciating the legislative intent. By subsequent amendment, the State Legislature by way of a greater caution clarified by inserting sub-entry (2) under entry No. 15 and making the original entry No. 15 as sub-entry (1) and covered also the oil engines and electrical motors other than those adapted for use in motor vehicles. In this state of affairs, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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