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TMI Blog1975 (7) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the batteries having been held to fall under entry 42B of Schedule C, the dealer has come in the present reference. The Tribunal has recorded a categorical finding that some of these batteries can also be used in tractors. When an attempt was made to contend that these batteries were sold as unchanged or dry batteries and so they were not covered by the relevant entry 42B of Schedule C, the Tribunal repelled that contention on the finding that the bills in question disclosed sale of batteries and, therefore, it was not established that only unchanged batteries were sold. It was further an admitted fact before the Tribunal that the batteries sold by these dealers were used in the motor vehicles although some of them could be used in tractors. Finally, the Tribunal took note of the fact that the dealer had collected tax at 10 per cent from the customers of the batteries under entry 42B of Schedule C and had paid tax at 10 per cent to the revenue, which revealed that the dealer treated sale of batteries as falling under this entry 42B of Schedule C. It is in the light of these relevant facts that we have to answer the aforesaid questions. The relevant entry 42B of Schedule C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the component parts, which themselves fall within this entry without any further condition being fulfilled. In Dilworth v. Commissioner of Stamps[1899] A.C. 99 at 105-106., their Lordships pointed out the settled rule of interpretation of the word "include" which was very generally used in order to enlarge the meaning of words or phrases occurring in the body of the statute, and when it was so used these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import, but also those things which the interpretation clause declared that they should include. Their Lordships also pointed out that the word "include" was susceptible of another construction, which might become imperative, if the context of the Act was sufficient to show that it was not merely employed for the purpose of adding to the natural significance of the words or expressions defined. It might be equivalent to "mean and include" and, in that case, it might afford an exhaustive explanation of the meaning which, for the purposes of the Act, must invariably be attached to these words or expressions. Therefore, we must find out the legislative intention as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued on 25th July, 1963, under section 41 under which at item 37, sales of tractors, spare parts and all accessories of such tractors were exempt from the whole of the general tax if the purchaser furnishes to the selling dealer a declaration in form C appended thereto declaring inter alia that he is an agriculturist and the tractor spare parts and accessories of tractor purchased by him will be used by him in the State of Gujarat for agricultural purposes. This notification, which exempted the tractors, their spare parts and accessories from the general sales tax, would clearly show that the State had interpreted tractors and spare parts and their accessories as not falling within entries 42B and 44A of Schedule C for which there would be no general sales tax, but only as falling under the residuary entry 22 of Schedule E. Mr. Pathak also rightly pointed out the settled legal position as laid down in J.K. Steel Ltd. v. Union of India A.I.R. 1970 S.C. 1173 at 1177, 1186., that it was permissible to look at the notifications issued by the Government by way of exemptions. In the matter of taxation large powers are left in the hands of the executive. Generally speaking, the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the parts of the whole vehicle or as its constituent part, and that would have reference to what goes in the composition in the whole as its essential part. In Agarwala Brothers v. Commissioner of Sales Tax[1969] 23 S.T.C. 306., the Allahabad High Court has on the entry in pari materia taken the same view that an article is a component of another when it forms a constituent part of the other and is essential for completing it. That presumes necessarily that the article as such must in its condition and functioning be capable of use in the other. That is why the diesel engine, which only with the assistance of conversion kits, could be used in motor vehicles, could not be said to be component part. On the same test in Commissioner of Sales Tax v. Pritam Singh[1968] 22 S.T.C. 414., the Allahabad High Court again took the view that a body mounted on the chassis of the motor vehicle was an integral part of the motor vehicle and, therefore, the truck bodies manufactured and sold by the assessee should be considered as component parts of motor vehicles within the meaning of a similar entry. At page 415, it was pointed out that a motor vehicle was a vehicle or carriage propelled by a mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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