9911796707
TMI Blog2000 (3) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... cement, on the ground that the assessees were manufacturing and supplying automobile spare parts, but had earlier treated the same as steel tubes and scraps taxable at 4 per cent. Similarly for the year 1985-86, the Assistant Commissioner (CT), made a similar revision under section 16(1). Therefore, the assessments were revised and the goods were treated as automobile parts taxable at 15 per cent. For the assessment year 1986-87, original orders of the assessment were made by the Assistant Commissioner treating the said goods as automobile parts at 15 per cent. 2. The three first appeals, A.P. Nos. 395, 396 and 397 of 1988 for the years 1982-83, 1983-84 and 1984-85 were heard in common by the Appellate Assistant Commissioner and decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion other than circular, with rounded corners along their whole length and tubes with upset ends, are also to be considered as tubes. They may be polished, coated, bent (including coiled tubing), threaded and coupled or not, drilled, wasted, expanded, cone shaped or fitted with flanges, collars or rings." The Central Excise Tariff of India also affirms the above description. Learned Government Advocate, Mr. R. Mahadevan, refers to the purchase orders describing the goods as exhaust pipes and tail pipes, which are admittedly automobile parts. He argues that the Appellate Tribunal has good reasons for treating the goods as automobile parts. Both parties have also relied on certain decisions. 4.. We have carefully considered the rival subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cles, bodies built on chassis of motor vehicles belonging to others (on the turnover relating to bodies), component parts of motor vehicles, all varieties of trailers, by whatever name known, tyres (including pneumatic tyres) and tubes ordinarily used for motor vehicles and trailers (whether or not such tyres and tubes are also used for other vehicles), and articles (excluding batteries) adapted for use generally as parts and accessories of motor vehicles and trailers (whether or not such articles are used for other purposes) and motor engines used for being fitted to cycles (including bicycles, tri-cycles, cycle rickshaws, tandem cycles, cycle combinations and perambulators). Item 4(xi) of the Second Schedule is as follows: "steel tube ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84 Rs. 19,96,564.00 1984-85 Rs. 23,76,178.00 1985-86 Rs. 35,31,001.00 1986-87 Rs. 79,87,595.00 7.. So far as a turnover of Rs. 4,20,30,657, the delay in filing form XVII was condoned and the matter remanded back to the assessing officer. For the assessment year 1985-86, the levy of penalty at 50 per cent of tax on the actual sustained turnover was upheld. For the year 1986-87, penalty was restricted to 50 per cent of the tax on sales of assets and credit notes. 8.. Therefore, the only issue before us relates to the sale of exhaust pipes and tail pipes to M/s. Ashok Leyland Ltd. 9.. While we should avoid the user theory in relation to the goods to be taxed, we cannot ignore the nature or description of the goods in the purchase o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is done by the purchaser is only to adapt the goods as parts and accessories of motor vehicles. The argument that the goods still continue to be steel tubes, is unacceptable. Consequently, entry 4(xi) of the Second Schedule is excluded. There is, therefore, no question of entry 4(xi) of the Second Schedule, overriding the First Schedule charge. 11.. The decisions cited on behalf of the assessee are not at all helpful. In fact, [1996] 102 STC 67 (SC) (Dewan Enterprises v. Commissioner of Sales Tax, U.P.) can be ruled out, because entry 4(xiv) itself talks of "wheels, tyres, axles and wheel sets . In [1995] 99 STC 87 (SC) (Vasantham Foundry v. Union of India) makes it clear that only rough unmachined cast iron can be brought under 4(i) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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