9911796707
TMI Blog1991 (4) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. Ltd. is a manufacturer of SECW wire. It made an application to the Deputy Commissioner of Sales Tax under section 62 of the Act for determination as to the rate of tax leviable on the sale made by it of "19 gauge-37.20 kgs. super enamelled copper winding wire" to M/s. B.M. Electricals and Motor Winders of Baroda on June 13, 1977. The Deputy Commissioner held that SECW wire cannot be regarded as spare part of electric motor and, therefore, its sale was liable to tax as electric goods falling under entry 41 of Schedule II, Part A to the Act. Thereafter, the Assistant Commissioner suo motu revised the assessment orders of the assessee in respect of the period from April 1, 1973 to June 30, 1974 and July 1, 1974 to June 30, 1975, holding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as "accessory to an electric motor". The Tribunal held that as SECW wire was required to undergo a further process of winding before it could be used in an electric motor, and as it lost its identity after it was converted into a coil and inserted into an electric motor, it cannot be regarded as a spare part of electric motor. The Tribunal further held that though SECW wire is specially manufactured for use in making coils for use in electric motor, it is not a spare part of electric motor as it cannot be inserted into an electric motor without subjecting it to a further process of winding. The Tribunal, taking this view, rejected the appeal and also the revision application, except to the extent that they were allowed so far as imposition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aling in armature wire or by persons dealing in electric motors and their parts. They are not sold as electric goods. He also submitted that SECW wire, after it is sold to a person who wants to repair electric motor is cut in suitable length and turned into coils of the type required for repairing that motor. Thus SECW wire is specially adapted for use as a coil or winding in an electric motor and for that reason it should be held as a spare part of electric motor. It was not disputed before the Tribunal and is not disputed before us also that SECW wire is specially adapted for use in electric motor, nor is there any dispute as regards the function it performs in electric motor. What was contended before the Tribunal and what is contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reserve for future use or to supply an emergency. These observations made by this Court are relied upon by Mr. Joshi and on the basis thereof, it was submitted by him that coil being an integral part of an electric motor, is often kept in reserve for future. He submitted that coil which is nothing else but SECW wire in a particular form is severable and capable of being substituted or replaced by another and, therefore, SECW wire should be regarded as spare part. While making those observations, this Court also pointed out that every part which goes into the making of an article would not necessarily be a spare part of that article. Therefore, merely because SECW wire in a coil form is used in electric motor and can be replaced when burnt o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is used in an electric motor for the purpose of replacing the burnt out or shorted coil or winding, it remains wire though in the form of a coil. Therefore, the contention raised on behalf of the department that SECW wire is a raw material from which a coil is prepared and it is coil which is used in electric motor and not SECW wire, cannot be accepted. Though SECW wire, after it is used in electric motor is also known as a coil or a winding, it is not possible to agree with the contention that it loses its identity as the raw material would lose its identity after manufacture of the finished product, or inasmuch as it becomes a different article. The decision of the Kerala High Court in Paul Lazar v. State of Kerala [1977] 40 STC 437, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be regarded as a component part of electrical goods. Even if the test laid down in that decision is applied to this case, it is not possible to come to the conclusion that SECW wire is not a spare part of an electric motor. What is required to be noted is that in that case the court was concerned with copper wire which is an article of general use. For that reason, it was observed in that case that it did not have an identity of its own so as to be regarded as a component part of electrical goods. It was regarded merely as a necessary material or constituent used in the manufacture of electrical transformers. That is not the position of SECW wire. As pointed out earlier, SECW wire is specially adapted for use in electric motor. It is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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