TMI Blog1995 (3) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of some such batteries manufactured by the Union Carbide India Ltd. alone during the pre-1976 period, may fall under Entry No. 3 as held by the High Court. However, multi-purpose batteries, not specified for use in transistors alone cannot be treated as “accessories thereof” of wireless reception instruments etc. for the purpose of Entry No. 3. No infirmity in the view taken by the High Court. Appeal dismissed. - Civil Appeal No. 102, 961, 962, 963, 964, 1518 of 1977, C.A. Nos. 4537-4558 of 1986, S.L.P. (C) No. 7520 of 1987 - - - Dated:- 20-3-1995 - J.S. Verma, S.P. Bharucha and K.S. Paripoornan, JJ. REPRESENTED BY : Dr. D.P. Pal, Mr. C. Sitaramiah, Sr. Advocates and Mrs. A.K. Verma, Mr. P.D. Tyagi, Advocates for J.B.D. Co., Ms. Priya Hingorani, Ms. Kamini Jaiswal, Mr. G. Prakash, Ms. T.V.S.N. Chari, Mr. S.R. Agrawal, Mr. Gautam Khaitan, Mr. A.N. Arora, Advocate (NP), Mr. B. Parthasarthy, Advocate (NP) with them, for the appearing parties. [Judgment per : J.S. Verma, J.]. These appeals by special leave are against the judgment dated 5-2-1976 in Tax Revision Case Nos. 18 and 19 of 1975, by the High Court of Andhra Pradesh. The two questions answered by the Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh High Court has been approved by this Court in Annapurna Carbon Industries Co. v. State of Andhra Pradesh, [1976] 37 S.T.C. 378, and it was held that arc carbons fell within Entry No. 4 of the First Schedule to the Act. It was held by this Court that : ........The meaning of this entry can only be satisfactorily determined in the light of the language of the entry itself considered in the context in which it occurs. The entry No. 4 occurs in a schedule in which descriptions of goods to be taxed indicate that the expression required for use therewith has been employed for equipment or accessories connected with the main purpose. For instance, in entry No. 5, the expression occurs at the end as follows : Photographic and other cameras and enlargers, lenses, films and plates, paper and cloth and other parts and accessories required for use therewith. Apparently, the deciding factor is the predominant or ordinary purpose or use. It is not enough to show that the article can be put to other uses also. It is its general or predominant user which seems to determine the category in which an article will fall. ..... Again, entry No. 3 for wireless reception instrumen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The finding was enough, in our opinion, to justify the view taken by the Andhra Pradesh High Court that the goods under consi-deration are covered by the relevant entry No. 4." (emphasis supplied) (at pages 380-81) 4. A plea on behalf of the assessee for reconsideration of the decision of this Court in Annapurna Carbon Industries Co. (supra) was made. We find no ground to accept that submission. We may add that the decision has held the field for all these years and we do not find any reason to doubt the correctness of that decision. It must, therefore, be held that the decision of the High Court that arc carbons are taxable under Entry No. 4 of the First Schedule to the Act does not call for any interference. 5. We now consider the question relating to dry battery cells. The matters involving this question are of two broad categori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssory of electrical goods to fall under Entry No. 38. The question for decision, therefore, is whether the view taken that dry cell batteries fall within Entry No. 38 is incorrect on the grounds urged by the State. Only in respect of Union Carbide India Ltd. for the pre-1976 period, the question also is : Whether the dry cell batteries marked for transistors were wrongly assessed to be taxable under Entry No. 3 instead of Entry No. 38? 8. At this stage, the relevant entries as they stood after the amendment made in 1976 and 1985 may also be quoted : With effect from 1-9-1976 :- 3. Wireless reception instruments and apparatus, radios and radio gramaphones, electrical valves, accumulators, amplifiers and loud-speakers and spare parts and accessories thereof . (1003) At the point of first sale in the state 12 paise in the rupee 38. All kinds of electrical goods, instruments, apparatus and appliances that is to say - -do- 8 paise in the rupee (i) Wires, holders, plugs, switches, electrical earthenware and procelain ware; (ii) Casings, cappings, reapers, bends, junction boxe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y No. 3. This is because the expression is accessories thereof . 9. In Hamlyn All-Colour Science Encyclopedia the accumulators are described as : The accumulator does not make electricity in the way that the dry battery does. Electricity has to be put in before any can be taken out. The same amount of electricity can be obtained from an accumulator as was put into it. On the other hand dry batteries are called a primary cell which is different from an accumulator, secondary cell or storage battery. 10. In Chambers Science and Technology Dictionary, accumulator is defined as : Voltaic cell which can be charged and discharged. On charge, when an elecric current is passed through it into the positive and out of the negative terminals (according to the conventional direction of flow of current), electrical energy is converted into chemical energy. The process is reversed on discharge, the chemical energy, less losses both in potential and current, being converted into useful electrical energy. Accumulators therefore form a useful portable supply of electric power, but have the disadvantages of being heavy and of being at best 70% efficient. More often known as battery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments etc. specified in Entry No. 3 or else they would fall under Entry No. 38 as other accessories of all electrical goods being the residuary entry. The dry cells or batteries marked for use in transistors as is the case of some such batteries manufactured by the Union Carbide India Ltd. alone during the pre-1976 period, may fall under Entry No. 3 as held by the High Court. However, multi-purpose batteries, not specified for use in transistors alone cannot be treated as accessories thereof of wireless reception instruments etc. for the purpose of Entry No. 3. 15. In Annapurna Carbon Industries Co., significance is attached to use of the word thereof and it was indicated that the deciding factor is the predominant or ordinary purpose or use and it is not enough to show that the articles can be put to other uses also. It was held therein that the general or predominant user seems to determine the category in which an article will fall. On a comparison made between the different entries in which the term accessories is used in the Schedule to describe goods, it was shown that the word was construed taking into account the fact whether the goods have been manufactured for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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