TMI Blog1990 (8) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... selling motor parts, tractor parts, tractors and agricultural implements. During the year 1966-67, the assessee had sold fuel injection pumps and their spare parts and the same were, as per the assessee, covered by the item of general machinery and it was liable to pay tax at I per cent under the Central Sales Tax Act. The assessee had been selling the goods to parties dealing in fuel injection spares required for diesel engines or to parties manufacturing diesel engines used for agricultural purposes. 3.. Initially the assessee paid under the Bengal Finance (Sales Tax) Act, 1941, as extended to Delhi, local tax at 10 per cent treating the fuel injection pumps, etc., as spare parts of motor vehicles. Before the assessing authority, however, it was contended that payment of sales tax at 10 per cent was a mistake and the said equipment could not be regarded as spare parts of motor vehicles. 4.. The assessing authority held that the goods were mostly sold to parties who dealt with motor vehicles and the goods were nothing else but motor parts though the possibility of their double use with or without slight alteration or modification was not ruled out. The assessing authority rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or cycles, and motor cycle combinations, motor taxi cabs, motor scooters, motor omnibuses, motor vans, motor lorries and motor trucks. (b) Chassis of motor vehicles. (c) Component parts of motor vehicles. (d) Accessories of motor vehicles including rubber tyres, tubes and batteries." 11.. After 30th September, 1959, the entry which has been first quoted was brought back, the effect of which was that in the year in question there is no reference to component parts of motor vehicles. With promulgation of Delhi Sales Tax Act, 1975, a new entry in the First Schedule, pertaining to motor vehicles, etc., has been inserted, which reads as follows: "Motor vehicles, including chassis of motor vehicles, motor tyres and tubes, accessories, component parts and spare parts of motor vehicles and motor bodies." 12.. A perusal of the aforesaid three entries will show that initially, prior to 1st December, 1956 and after 30th September, 1959, till the promulgation of the Delhi Sales Tax Act, 1975, in the entry pertaining to motor vehicles, there was no reference to component parts. Component parts were covered by this entry between 1st December, 1956 to 30th September, 1959 and after th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egarded as a distinct and a separate taxable item than a motor vehicle then, it would appear to us, that a spare part of a diesel engine cannot be regarded as a spare part of the motor vehicle merely because the diesel engine is subsequently fitted in the motor vehicle. 17.. It would be helpful to refer to some decided cases where similar questions had come up for consideration. In the case of Commissioner, Sales Tax v. Free India Cycle Industries [1970] 26 STC 428* the Allahabad High Court was concerned with an entry "bicycles, tricycles, cycle rickshaws and perambulators and parts and accessories thereof other than tyres and tubes ". The assessee was a dealer in cycle and cycle goods and the question arose whether rexine saddle covers manufactured and sold by it would fall within that entry. It was observed by the Division Bench that the expression "parts and accessories" qualified the word "bicycles, tricycles, etc." The entry was regarded as referring to parts and accessories of the vehicles and did not include accessories of individual parts or accessories of the vehicle. Dealing with the question of rexine covers, it was held that "rexine covers in question are used as a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chinery or part of a machinery and taxed, under the 1975 Act, at the rate of 5 per cent. Irrespective of the fact as to under what entry sales tax is levied on a diesel engine, there can be no manner of doubt that a fuel pump, with which we are concerned in the present case, is only a part or a component of a diesel engine. It has no independent use or utility in a motor vehicle without its being attached to an engine. 19.. Mr. Arora has drawn our attention to the judgment of the Bombay High Court in the case of Commissioner of Sales Tax v. Acme Mfg. Co. Ltd. [1990] 78 STC 79. The question which arose in that case was with regard to the taxability of valves. It was held by the Bombay High Court that valves are component parts of diesel engine and that diesel engines were components or parts of motor vehicles. The relevant entry in the Schedule of the Bombay Sales Tax Act described the goods taxable under entry 58(2) as "component and spare parts of motor vehicles specified in sub-entry (1)..... not being such articles as are ordinarily also used otherwise than as such parts and accessories." It was held by the court that a component part of a component part of a motor vehicle was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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