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TMI Blog1994 (1) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the materials placed before me. The revisionist is a manufacturer of rims for cycles and the only question agitated in these revisions is whether the cycle rims are declared goods under clause (iv)(xiv) of section 14 of the Central Sales Tax Act, 1956. According to section 15 of the Central Sales Tax Act, a restriction is placed on the rate of sales tax that can be charged by the States on the sales of goods which have been declared to be of special importance in the inter-State trade or commerce under section 14 of that Act. By virtue of section 15(a) of the Central Sales Tax Act the tax payable under any State law in respect of any sale or purchase of the declared goods inside the State shall not exceed four per cent of the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the hub usually by spokes. According to Random's House Dictionary, "wheel" means a circular frame or disc arranged to revolve on an axle as on or in vehicles, machinery, etc. According to Oxford English Dictionary, Volume VIII, "rim" means a peripheral portion or outer ring of a wheel connected with the nave or boss by spokes or by a web. According to the same dictionary, Volume XII, a "wheel" means a circular frame of wood, metal or hard substance with spokes radiating from the central part or nave attached or capable of being attached. Thus, according to the dictionary meaning, a "rim" and a "wheel" are different things and a rim can become a wheel only when by using spokes, hub and/or other things, it is made capable of revolving on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then that entry must be understood in the context of that particular trade bearing in mind that particular word. The same view was taken in Collector of Customs v. Swastic Woollens (P) Ltd. [1989] 72 STC 201 (SC). In this case before us the dealer itself describes the commodity in question as cycle rim. It is common knowledge that cycle rim is a commercially known part of a cycle and is known as rim and only an ignorant or careless person may describe a rim as a wheel. The revisionist has not placed any material before any of the authorities below to show that cycle rim is known as a wheel in the cycle trade circles. It is not shown that ever in the bills raised by the revisionist on its customers or in the orders placed by the customers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stages of tax and the State law cannot place a larger burden on the tax-payers, but the categorisation of the commodity concerned under the State law is relevant for determining the category under which the commodity falls. If under the State law, the rate of tax for that commodity is lower than four per cent, then the lower rate will have to be charged. If the State law levies tax at several stages of sales then in terms of section 15 of the Central Sales Tax Act, in respect of declared goods, tax will have to be restricted only to one stage. The classification of goods under the State law, therefore, is not always irrelevant. No other point was pressed in these revisions. In view of the aforesaid discussion, I find no force in these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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