TMI Blog1996 (4) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... he High Court is set aside and it is held that the appellant is only entitled to be taxed at 4 per cent on the sale price of the cycle rims. - Civil Appeal No. 900-909 of 1994, S.T.R. Nos. 1822-1831 of 1993 - - - Dated:- 24-4-1996 - VEA J.S. RM, KIRPAL B.N. AND PATTANAIK G.B. JJ. T.N. Singh, Advocate, for the respondent. Raja Ram Aggarwal, Senior Advocate (Dhruv Aggarwal, Sunil Kumar Jain and J.K. Bhatia, Advocates, with him), for the appellant. -------------------------------------------------- The judgment of the Court was delivered by B.N. KIRPAL, J. -The appellant carries on the business of manufacturing and sale of rims of cycles. The assessing officer, under the Uttar Pradesh Sales Tax Act, made provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1988] 68 STC 123 wherein it was held that the cycle rim came within the ambit of "wheel" and were declared goods. The single Judge of the Allahabad High Court from which the appeal arises, while dissenting from the aforesaid judgment of the Rajasthan High Court, came to the conclusion that a rim and a wheel are different things and a rim could become a wheel only by using spokes, hub and/or other things. The rim manufactured by the appellant, it was held, was not capable of revolving by itself and, therefore, it could not be called a wheel. The High Court, therefore, concluded that cycle rim was not commercially known as "wheel" and, therefore, could be taxed under the U.P. Sales Tax Act at 8 per cent and it was not declared goods. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 14 of the Act. While dismissing the petition filed by the Assistant Commercial Taxes Officer, it was observed as follows: "So far as the 'axles' are concerned the same are expressly mentioned in the above entry (xiv). For this reason the Tribunal's decision relating to axles cannot be challenged. The question is only of the 'rims' used in wheels of cycles and other vehicles. This being so, the Tribunal's view that rims are an integral component or part of a wheel or at least a wheel set, cannot be treated as unjustified. There is no other competing entry. This being so, if the above quoted entry (xiv) is wide enough to include rims within its ambit, then the applicability of the residuary entry would automatically been excluded. Taki ..... X X X X Extracts X X X X X X X X Extracts X X X X
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