9911796707
TMI Blog1985 (10) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... . 30 of Part II of Second Schedule to the M.P. General Sales Tax Act, 1958, or it was leviable as per entry No. 1 of Part II of Second Schedule?" 2.. The dealer, M/s. Dawar Bros., carried on business in motor vehicles, motor parts and accessories, petrol, diesel and lubricants, etc. For the assessment years 1965-66, 1966-67 and 1967-68, the question arose about the rate at which sales tax was to be levied on the sale of batteries used in motor vehicles by this dealer. From 1st September, 1967, a specific entry was made for batteries, which was entry No. 1-A in Part II of Second Schedule to the Act. There was no controversy that from 1st September, 1967, sales tax on batteries was leviable under entry No. 1-A. For the periods 1965-66, 1966 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lighting bulbs, electrical earthenware, porcelain and all other accessories. PART VI 1.. All other goods not included in Schedule I or any other part of this schedule." With effect from 1st September, 1967, entry No. 1-A was inserted in Part II of Second Schedule as under: "PART II S. No. Description of goods. 1-A. Batteries excluding cells mentioned in entry 30 of this Part." As earlier stated, there is no controversy that batteries fall under entry No. 1-A ever since its insertion with effect from 1st September, 1967. The question for decision is under which entry batteries fell prior to 1st September, 1967. 5.. Entries Nos. 1 and 1-A provide for a higher rate of tax than that for goods falling under entry No. 30. Entry No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that wet storage batteries of this kind do not fall within that entry and it is only the dry cells which are included within it by specific mention of the word "cells" therein. Dry cells and wet storage batteries are both known as "batteries" of which they are different kinds. If the intention was to include all kinds of batteries in entry No. 30, then the word "cells" alone would not have been used therein, instead of the word "batteries" which would have also included cells along with wet storage batteries. The legislative intent is further evident from entry No. 1-A, inserted with effect from 1st September, 1967, providing expressly for batteries immediately after entry No. 1 and excluding therefrom "cells" mentioned in entry No. 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in motor vehicles, whether sold with the motor vehicle or separately by a dealer in motor vehicles, motor parts and its accessories. 9.. The Tribunal's conclusion is influenced by the fact that wet storage batteries can be used for purposes other than running of a motor vehicle. In our opinion, its likely or casual use for certain other purposes, while its essential use as an accessory of a motor vehicle continues, does not alter its inherent character as an accessory of a motor vehicle which brings it within the ambit of entry No. 1. This conclusion is also supported by the scientific meaning of the word "battery" and some decisions dealing with the ancillary questions, apart from the fact that entry No. 1-A, providing specifically fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al goods" was rejected. No doubt, specific mention of "batteries" was made elsewhere as a component part of a motor vehicle, but it was expressly held that batteries would not fall within the definition of "electrical goods". In Bijili Co. v. State of Tamil Nadu [1974] 34 STC 461, a similar view was taken on the ground that "battery" is not covered by electrical goods, even though it is used for production of energy. This decision also is relevant for indicating that "battery" does not fall within the meaning of "electrical goods", even though, like the earlier decision, another entry covered batteries. In P.P. Metal Corporation v. Commercial Tax Officer [1977] 40 STC 393, the Andhra Pradesh High Court also took the same view that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les as an accessory or component part, were never included in the aforesaid entry No. 30. With effect from 1st September, 1967, the wet storage batteries are covered by the specific entry No. 1-A and prior to that date, they fell within entry No. 1 as an accessory of the motor vehicle. 14.. As a result of the aforesaid discussion, it follows that the Tribunal has taken a contrary view on account of misconstruction of the relevant entries. The reference is, therefore, answered in favour of the department and against the dealer as under: "Prior to 1st September, 1967, wet storage batteries sold separately by the dealer were also taxable in accordance with entry No. 1 and not entry No. 30 of Part II of Second Schedule to the M.P. General S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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