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TMI Blog1980 (9) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 and of agricultural implements at Rs. 12,445. The assessing officer did not accept the book version nor did he agree with the assessee that the sales of pulleys purchased from U.P. were not taxable. He determined the total sales at Rs. 80,000 and allowed exemption in respect of sales of agricultural implements. It may be noted that pulleys were treated by him as "mill stores and hardware". The assessee filed an appeal, but remained unsuccessful and then filed a revision. The revising authority accepted the assessee's contention that there was no proper reason for rejecting the accounts. It also agreed with the assessee that pulleys were liable to be assessed as iron and steel under section 14(iv) of the Central Act but did not accept the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n categorised in 16 heads, one of which, viz., sub-clause (xiv), reads: "Wheels, tyres, axles and wheel sets." According to Sri R.C. Sharma, the learned counsel for the assessee, pulleys are wheels falling in this particular category of iron and steel. I am not inclined to agree with the learned counsel. It is now settled by the decision of the Supreme Court in State of Tamil Nadu v. Pyare Lal Malhotra[1976] 37 S.T.C. 319 (S.C.); 1976 U.P.T.C. 282 (S.C.). that clause (iv) of section 14, as it originally stood, was meant to enumerate separately taxable goods and not just to illustrate what is just one taxable substance, namely, "iron and steel ". Each sub-item in clause (iv) is a separate taxable commodity for purposes of sales tax and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The torque originates at a wheel or drum, called the drive pulley, that applies torque to a continuous, flexible member called the belt. The belt passes around and delivers torque to a second wheel or drum, called the driven pulley." In Oxford English Dictionary, Volume VIII, at page 1581, one of the meanings given to pulley is: One of the simple mechanical powers, consisting of a grooved wheel mounted in a block, so that a cord or the like may pass over it; used for changing the direction of power, especially for raising weights by pulling downwards. Similarly in Webster's Third New International Dictionary, Volume II, page 1840, pulley has been stated to mean: 1 a: a small wheel with a grooved rim, sheave; b: a sheave with the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different from wheels, seat, frame. etc., the parts of which it consists of. On this view of the matter it is not possible to accept the contention of the assessee that pulley falls within the category of "wheel" as mentioned in sub-clause (xiv) of clause (iv) of section 14 of the Central Act. Therefore, pulleys are not wheels and as such they cannot be treated as iron and steel under section 14(iv) of the Central Act and the view taken by the revising authority is erroneous. As for the question whether pulleys can be taxed as machine parts, the matter stands covered by a decision of this Court in Commissioner of Sales Tax v. Om Iron Foundry[1974] 33 S.T.C. 82. It has been laid down in that case that ordinary pulleys connecting shafts wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded as an article of hardware. In the popular sense 'hardware' would comprise small articles of base metals such as iron, copper, aluminium and their alloy like brass, etc. The meaning in the Shorter English Oxford Dictionary approximates to this popular meaning. There the term 'hardware' means 'small wares or goods of metal, ironmongery." Further the view taken in that case was that in oder to ascertain the true scope of the term "hardware", as understood in the commercial world, it would be helpful to look into some trade journals and catalogues of hardware items. On a perusal of trade journals like "British Empire Trade Index" and the "Bombay Market" and some catalogues of some leading hardware merchants, it was observed: "(i) that h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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