Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2006 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (10) TMI 416 - HC - VAT and Sales TaxGujarat Sales Tax Act, 1969 - Classification of product - Sales of 'tool-bits' and 'jobber drills' (drill panna) - HELD THAT:- It is to be noted that the orders passed by the Deputy Sales Tax Commissioner (Law), Gujarat State, on an application submitted by M/s. BPCO Industries Ltd. for determination of tax payable on "tool-bits" and yet another order passed on a similar application filed u/s 62 of the Act by the learned Deputy Sales Tax Commissioner (Law), Gujarat State have yet not been challenged by the Department before any appellate forum. Thus, the orders would not only bind the applicant who made the reference but would also bind the State Sales Tax Department which was a party before the Commissioner of Sales Tax. Hence, we must hold that the Tribunal was justified in holding that "tool-bits" would be taxable under entry 3(ix) of Schedule II, Part A of the Act. In our opinion, the Tribunal was not unjustified in holding that "jobber-drills" would be worth-nothing unless it is used as part of the machinery. When speed drills or jobber's drills are used with the help of the machinery, then they would become part of the said machinery. It is also to be noted that without the said "jobber-drills" neither the machine would be complete nor the driller would be worth any use in absence of its use in the machinery. Entry 36 of the Government notification dated June 20, 1970 issued u/s 49(2) says that sales of spare parts and accessories (excluding ball bearing) of machinery which is covered by sub-entry (1) of entry No. 16 in Part A of Schedule II would enjoy exemption to the extent to which the amount of sales tax exceeds (3 paise in rupee) and whole of the general sales tax. If "jobber-drill" is taken to be a spare part of the machinery or as an accessory of the machinery, then entry No. 36 which relates to exemption to a particular item would come into play to assist the case in cause of the present assessee. In our opinion, the Tribunal was absolutely justified in deciding the questions in favour of the assessee. The reference is answered in affirmative, in favour of the assessee and against the Revenue. It accordingly stands disposed of.
|