1973 (10) TMI 48

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..... . for manufacture of "micro filters". Before the assessing authority, the assessee claimed that on his turnover relating to sales of "felt washers" he is liable to pay tax only at the concessional rate provided under section 5(3A) of the Act, which claim was accepted by the Additional Commercial Tax Officer who passed the assessment orders. 2.. However, the Deputy Commissioner of Commercial Taxes in exercise of the powers conferred by section 21(2) of the Act revised the orders of the Additional Commercial Tax Officer and held that the assessee is not entitled to the benefit of section 5(3A), but is liable to pay tax at the rate provided under section 5(1). Appeals preferred by the assessee against the said orders to the Mysore Sales Tax A .....

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..... ndustrial countries, it is common knowledge that manufacturers of finished products do not manufacture all the component parts themselves. They purchase some of the component parts required by them from ancillary industries, e.g., a refrigerator or a motor car consists of several component parts. A manufacturer of refrigerators or cars will not be manufacturing all the component parts, but will buy the same from manufacturers of ancillary industries. 4.. Under the scheme of the Act, a manufacturer of component parts who sells his articles of manufacture to registered dealers in the State has to satisfy two conditions in order to entitle him to the benefit of the concessional rate provided under section 5(3A). They are: (1) That the compon .....

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..... 7., has held that "from the language of serial No. 73 of the Second Schedule, it appears to us that the Legislature had in mind the case of articles which are ordinarily used for one purpose, but by alteration made are used for a different purpose, viz., as parts and accessories of motor vehicles, and it is to such articles that serial No. 73 of the Second Schedule applies". In view of the said decision, the said contention of the learned counsel has to be rejected. 5.. From the scheme of the Act it appears to us that the Act does not contemplate the grant of the benefit of section 5(3A) to a dealer who manufactures and sells a component part of a component part of a finished product. This view of ours finds support from serial Nos. 52, 53 .....

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