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TMI Blog2014 (5) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... y 119 of I Schedule, once customised for use in motor vehicles as parts and accessories, the same would only fall under Entry 3 of the First Schedule. The Sub Entry is a user oriented entry for the purpose of fixing the liability - In contrast to the normal theories available in the matter of interpretation of the entry, particularly, the entries relating to the general goods, when Entry 3 under I Schedule is clear that nuts and bolts as part and accessory are manufactured for use in automobiles excluding batteries and brought under Entry 3, this court do not subscribe to the contention of the assessee that Entry 119 is a specific entry and hence, nuts and bolts, parts manufactured by the assessee, even though they are automobile parts, would nevertheless fall under Entry 119 – Thus, there is no hesitation in rejecting the assessee's appeal - Accordingly, Revision No.2308/2008 stands dismissed. Rate of Tax - Classification of ‘bolts and nuts’ - Sl.No.35(iii) of Part D or Entry 13(ii) of Part DD or Entry 6 of Part D of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 - As part of motor vehicle - Held that:- Question raised is identical one as raised before thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 9(2) of the Central Sales Tax Act, 1956 upto 22.01.2000 and thereafter, under Entry 13(ii) of Part DD of the First Schedule to the TNGST Act, 1959 as parts and accessories of motor vehicles instead of holding that the bolts and nuts fall under Entry 6 of Part D of the First Schedule which was a specific entry for bolts and nuts ?" 2. The assessee is a manufacturer and dealer in Bolts and Nuts, machine tools, iron scrap etc. The bolts and nuts manufactured for use as motor vehicle parts were sold to Automobile manufacturers as well as to dealers in automobile spares. On a verification of the orders placed by the automobile manufacturers, the Assessing Officer came to the conclusion that the items manufactured were against specific description as automobile spares; hence, these items did not come under Entry 119 of First Schedule to the Tamil Nadu General Sales Tax Act, 1959, to be treated as 'common bolts and nuts'. Going by the nature of products thus manufactured and sold, the Assessing Officer rejected the assessee's contention that the item in question fell under Entry 119 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 (hereinafter called as the "TNGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, but whatever name known; ii) motor-cycles, motor scooters, motorettes, mopeds; iii) bicycles, tricycles, cycle-rickshaws, tandem cycle, cycle combinations and perambulators fitted with motor engines and motor engines used for being fitted thereto; iv) tyres including phenumatic tyres, tubes and flaps ordinarily used for motor vehicles and trailers mentioned in sub-item (i) to (iii) above (whether or not such tyres, tubes (and flaps) are also used for other vehicles); v) parts and accessories of motor vehicles and trailers excluding batteries. " (taxable at 12%) 6. Entry 2 of V Schedule reads as follows:- Sl.No. Description of goods Point of levy and rate of tax (PER CENT) At the point of first sale in the State to persons other than registered dealers At the point of first sale in the State to a registered dealer At the point of last sale in the State Was in force during the period (1) (2) (3.a) (3.b) (3.c) (3.d) 2. Parts and accessories of motor- vehicles and trailers excluding batteries 12 8 4 23.03.1987 to 06.10.1988 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brought under Entry 119. 9. Referring to the decisions relied on by the assessee viz., PLASMAC MACHINE MGF CO. PVT. LTD VS. COLLECTOR OF CENTRAL EXCISE reported in 1191 (51) E.L.T. 161 (Supreme Court), BHUR INDUSTRIES LTD, BOMBAY VS. COLLECTOR OF CENTRAL EXCISE, BOMBAY reported in (1989) 1 SCC 602, M/S.ASIAN PAINTS INDIA LTD VS. COLLECTOR OF CENTRAL EXCISE reported in (1988) 2 SCC 470, decision of the Bombay High Court in the case of SIMMONS MARSHAL LTD VS. M.RBARALIKAR ASSISTANT COLLECTOR OF CENTRAL EXCISE, PUNE AND OTHERS reported in 1985 (22) E.L.T.378(Bom), The CEGAT, Special Bench 'D', New Delhi in the case of COLLECTOR OF CENTRAL EXCISE, MADRAS VS. SUNDARAM FASTENERS LTD. MADRAS reported in 1985 (22) E.L.T.923 (Tribunal), the Sales Tax Appellate Tribunal held that these decisions had no relevance at all. For understanding the issue, when Entry 119 deals with all 'bolts and nuts' without any exclusion clause and and Entry 3 deals with parts and accessories of motor vehicles without any inclusion clause, the contention of the assessee that by mere naming of the items as bolts and nuts should fall under Entry 119 was rejected by the Sales Tax Appellate Tribunal. The Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particularly when a separate entry is there for bolts and nuts. He also pointed out that from 01.04.1988 to 06.10.1988, parts and accessories of motor vehicles were kept under Fifth Schedule that the rate of tax was fixed at 8% at the point of first sale to the registered dealers and that of 12% to unregistered dealers. Entry 2 in the Fifth Schedule was added by way of Act 31 of 1987 taking it from item 3 of the First Schedule. Subsequently, Entry under Entry 3 was amended from 07.10.1988 by way of Sub Clause (v) to include parts and accessories of motor vehicles excluding batteries. 12. Learned counsel pointed out that with the specific exclusion of batteries alone in the entries and a specific entry available under Entry 119 dealing with bolts and nuts, the question of treating bolts and nuts as falling under Entry 3 is not sustainable. In this connection, learned counsel placed before us the decision of the Kerala High Court in the case of New Prasanthi Automobiles Co Vs. State of Kerala reported in (1993) 91 STC 565, which related to assessee's Distributor's case. 13. We have gone through the entries and the amendments brought forth and the findings given by the Tribunal. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Vs. Western India Plywoods (P.)Ltd (1980) 46 STC 331, in the case of Mukesh Kumar Aggarwal Co., Vs. State of Madhya Pradesh (1988) 68 STC 324, the Kerala High Court held that the items in question were liable to be assessed as Iron and steel articles under entries 45 and 99 respectively of the First Schedule to the Kerala General Sales Tax Act during the relevant period. The Kerala High Court also referred to the note by the Board of Revenue that the Department itself had classified bolts and nuts as falling under Entry 45 of the First Schedule to the Kerala General Sales Tax Act. As far as the question as to whether jack is an accessory to a motor vehicle liable to tax at 15 per cent or an iron and steel article taxable to 6 per cent, the Kerala High Court held that a person seeing an automobile jack is not likely to understand it as a mere iron and steel article. He is likely to understand it only as an adjunct to the automobile necessary for its proper and effective use. He will view it as something which is sold by an automobile dealer and as something which every user of an automobile should necessarily possess. Going by this reasoning, the Kerala High Court rejected the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out that learned counsel for the assessee placed before us the list of purchasers only to point out that there was textile industries, who also had made purchases from the assessee. Hence, inference could be drawn that bolts and nuts were also used in textile industry. We fail to understand how by going through the name of the purchaser, one can come to the conclusion that bolts and nuts manufactured by the assessee had multifarious functions. There is absolutely no relevant material to substantiate his contention. 19. Entry 3 of First Schedule, as amended by Act No. 7 of 1965, reads as under:- " 3. Motor vehicles including motor cars, motor taxi-cabs, motor cycles and cycle combinations, motor scooters, motorettes, motor omnibuses, motor vans and motor lorries, chassis of motor vehicles, 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accessories, the same would only fall under Entry 3 of the First Schedule. 23. The Sub Entry is a user oriented entry for the purpose of fixing the liability. In contrast to the normal theories available in the matter of interpretation of the entry, particularly, the entries relating to the general goods, when Entry 3 under I Schedule is clear that nuts and bolts as part and accessory are manufactured for use in automobiles excluding batteries and brought under Entry 3, we do not subscribe to the contention of the assessee that Entry 119 is a specific entry and hence, nuts and bolts, parts manufactured by the assessee, even though they are automobile parts, would nevertheless fall under Entry 119. Entry 119, in fact, is a general enumeration of goods for the purpose of identification and the rate of tax. Once the item in question viz., "bolts and nuts" is customised for use as parts and accessories of motor vehicle and trailers, the relevant entry herein would be the specific entry viz., Entry 3 of I Schedule of the Tamil Nadu General Sales Tax Act. 1959. 24. In the light of the above, we have no hesitation in rejecting the assessee's appeal. Accordingly, the Tax Case Revision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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