TMI Blog1968 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... s as specified in their bill, a copy of which has been annexed to this reference. The assessees contended in the said application that the goods sold by them were covered by entry 6 of Schedule A to the Act which provides that bullock-carts and spare parts thereof are not liable to any tax under the Act since all the items covered by the entries in Schedule A are exempt from the payment of any tax under the Act, The Deputy Commissioner came to the conclusion that the sale of old tyres would be covered by residuary entry 22 of Schedule E and the sale would be liable to tax accordingly subject to the other provisions of the Act. It has been found that the opponents purchased old and worn out tyres of the buses of the State Transport Organiz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n referred to the High Court by the Tribunal: "Whether, on the facts and in the circumstances of the case, the sale of old tyres for bullock-carts as specified in Bill No. 54, dated 2nd May, 1963, is covered by entry 6 of Schedule A?" One of the factors which weighed with the Tribunal at the time when it reversed the decision of the Deputy Commissioner was that motor tyres when new would cost Rs. 550 each while the second-hand tyres which were still fit for use as motor tyres after retreading would cost Rs. 250 and the old tyres sold by the opponents were being sold at Rs. 65 each. The Tribunal also observed that once the tyres became unserviceable as motor tyres, the purpose for which they were designed by the manufacturers would not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Supreme Court in Commissioner of Sales Tax v. Jaswant Singh Charan Singh[1967] 19 S.T.C. 469. In that case before the Supreme Court the question was whether "charcoal" was included in the word "coal" specified in entry 1 of Part III of Schedule 11 to the Madhya Pradesh General Sales Tax Act, 1958. After examining the different authorities on the point, the Supreme Court has observed at page 473 of the report: "The result emerging from these decisions is that while construing the word 'coal' in entry 1 of Part III of Schedule 11, the test that would be applied is what would be the meaning which persons dealing with coal and consumers purchasing it as fuel would give to that word. A sales tax statute, being one levying a tax on good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allahabad High Court that zinc oxide and red lead sold by the assessee fell under the head "chemicals of all kinds"; and the ratio of the decision of the Allahabad High Court was that having regard to the intention of the Legislature to tax sales, any ambiguity as to the category in which an article should be placed should be resolved with reference to its sale. If an article is sold as an article belonging to one category it must be treated as a sale of an article of that category even though it answers the description of another category. If therefore an article is capable of being used as a chemical and also as a colour, the answer to the question what was sold would depend upon how it was treated by the vendor. If he stocked and sold it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would fall within the residuary entry 22 in Schedule E. It was urged before us on behalf of the State that this particular commodity, viz., old tyres, was not essentially a bullock-cart tyre and that it could as well have been used as a camel-cart tyre or a tyre of any other animal-drawn vehicle. The conclusion which was drawn by the Deputy Commissioner, viz., that it was possible that these tyres can be used for hand-carts has not been accepted by the Tribunal because, according to the Tribunal, there was no evidence on the point as to whether the old tyres in question could be used for hand-carts. Under these circumstances, we will keep out of our consideration the possibility of old tyres of the type sold by the assessees for hand-car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the wrist watchcases, the Division Bench held that the wrist watch-cases were spare parts of watches and would fall within entry 10 of Schedule E and, therefore, would not fall within entry 22 of Schedule E, that being the residuary entry. Applying the same meaning and same test as to what is meant by a spare part to the facts before us, the old tyres of the kind which were sold by the assessees were certainly capable of being fitted to bullock-carts and were interchangeable parts, and when fitted would go to complete a whole bullock-cart. It was urged before us on behalf of the State by the learned AdvocateGeneral that if a particular article or commodity is capable of being used as a spare part of a bullock-cart and is also capable of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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