TMI Blog1977 (8) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... e process of manufacturing transformers. During the assessment year 1966-67, the assessee sold copper wires for a total sum of Rs. 1,75,843.82 to the Indian Transformers Ltd., and furnished to the department declarations in form 18 for the purpose of availing himself of the concessional rate of 1 per cent in terms of subsection (3) of section 5 of the Kerala General Sales Tax Act, 1963, for short, the Act. We shall read sub-section (3): "(3) Notwithstanding anything contained in sub-section (1) or subsection (2), the tax payable by a dealer in respect of any sale of the goods mentioned in the First Schedule by such dealer to another for use by the latter as component part of any other goods mentioned in the said schedule, which he intends ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcept with the application of electrical energy, including fan and lighting bulbs, electrical earthenwares and porcelain and all other accessories and component parts either sold as a 4.. It is contended that copper wires are component parts falling under the above entry. An article has been considered to be a component part of another when the article forms a constituent part of the latter and the latter is incomplete without the former. A body mounted on the chassis of a motor vehicle has been treated as a component part of a motor vehicle as a vehicle is incomplete without the body. Diesel engines which can ordinarily be used for various purposes, but which cannot, without the assistance of conversion-kits, be used in motor vehicles, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be capable of being visually identified in the finished product, so long as it can be identified by chemical or other test: State of Madras v. R.M. Krishnaswami Naidu[1970] 26 S.T.C. 42 (S.C.). 6.. The principle which can be deduced from the decisions cited above is that an article can be regarded as a component part of the principal object only if the latter is incomplete, without the former, and the former is capable of identification either visually or through chemical or other test as a distinguishable part of the finished product. Applying this test it is not possible to say that copper wire, although a necessary material or constituent used in the manufacture of electrical transformers, has an identity of its own to be regarded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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