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TMI Blog1997 (9) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies Act, 1956. It has its registered office at Indore. Petitioner is a registered dealer under the M.P. General Sales Tax Act, 1958 and continues to be so under the M.P. Vanijyik Kar Adhiniyam, 1994. Petitioner is also a registered dealer under the Central Sales Tax Act, 1956. Petitioner carries on business of manufacture and sale of S.E.C. wire (for short "enamelled wire"). Contention of the petitioner is, that as per notification dated March 31, 1992, issued by State Government under section 12 of the M.P. General Sales Tax Act, 1958 (Repealed Act), the rate of sales tax on this commodity was fixed at 6 per cent. This rate of tax, was enforced from April 1, 1992 to March 31, 1995. M.P. Vanijyik Kar Adhiniyam, 1994 also known as M.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order be upheld and petition be dismissed. 5. I have heard counsel for parties and perused the record. 6. Entry 7 of Part IV of Schedule II of the Act of 1994, fixes the liability of payment of tax at 10 per cent on all items shown therein. The said entry is reproduced hereinbelow: SCHEDULE II, PART IV S.No. Description of goods Total rate of tax (1) (2) (3) 1 to 6 .. 7 All machineries or machines worked by electricity, diesel or petrol and parts and accessories therof excluding those specified in Schedule I and in entry 3 of this Part. 10 7. The State Govenment issued a Notification F.No. A-3-1-95/ST-V(35) dated April 1, 1995 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain authorities of various High Courts and Supreme Court to press their respective points. I shall now deal with each of the authorities. 10. The first case placed before me for consideration in this regard is reported in [1995] 96 STC 300 (State of Andhra Pradesh v. Radiant Engineering Co.). In the said case, the Division Bench of the A.P. High Court, while considering the entries in Schedule of the Andhra Pradesh General Sales Tax Act, has held that insulated copper wire would fall within the meaning of electrical goods under entry 38(i) of the First Schedule to the Andhra Pradesh General Sales Tax Act, but, bare wire would not, and would be taxable as general goods. The relevant paras of the said judgment are reproduced hereinbelow: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act would be applicable. 12.. After considering judgments of various courts, the learned single Judge has held as under: Before an article can be considered to be extra or spare part, it must be held to be part of the machinery. As unless something is part, it cannot be a spare part. A machinery may consist of numerous parts, some may be essential and integral parts of it and others may be for smooth and efficient running of the machine. All the same both are parts of the machinery. Those parts that can be replaced or substituted are described as spare parts. But merely because they can be replaced they do not cease to be parts. A part which cannot be replaced becomes a part of the machinery itself and those that are capable of being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sketches of site plans could not be described as paper as that word was used in common parlance. On the same basis the Orissa High Court held in State of Orissa v. Gestetner Duplicators (P.) Ltd. [1974] 33 STC 333 that stencil paper could not be classified as paper for the purposes of the Orissa Sales Tax Act. It is a matter of common experience that the identity of an article is associated with its primary function. It is only logical that it should be so. When a consumer buys an article, he buys it because it performs a specific function for him. There is a mental association in the mind of the consumer between the article and the need it supplies in his life. It is the functional character of the article which identifies it in his m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of powerful light used in projectors in cinemas. The fact that they can also be used for searchlights, signalling, stage lighting, or where powerful lighting for photography or other purposes may be required, could not detract from the classification to which the carbon arcs belong. That is determined by their ordinary or commonly known purpose or user. This, as already observed by us, is evident from the fact that they are known as cinema arc carbons in the market. This finding was enough, in our opinion, to justify the view taken by the Andhra Pradesh High Court that the goods under consideration are covered by the relevant entry No. 4. 16.. Thus on overall consideration of all aspect of the matter, I am of the opinion that enamelle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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