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TMI Blog2014 (4) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... rea Fertilizer. It is a registered dealer under the U.P. Trade Tax Act, 1948 (for short 'the U.P. Act') and the Central Sales Tax Act, 1958 (for short 'the Act'). 3. The respondent-assessee being a manufacturer was entitled to the benefit provided under Section 4-B of the U.P. Act on the purchase of materials required for the use in the manufacture of goods. The respondent- assessee had filed Form No. 18 as required under Rule 25(2) of the U.P. Trade Tax Rules (for short "the Rules") for grant of certificate of recognition to purchase raw-material, fertilizers and component parts at the concessional rate of tax. The authority after considering the said application had issued the recognition certificate in Form No. 19 as envisaged under the Act and Rules, dated 04.11.1977. 4. The assessee apart from other raw materials had purchased spare valves, cable, pump and transformer at concessional rate of tax for use in the manufacture of its final product, namely urea fertilizer. 5. The assessing authority issued two notices under Section 3-B of the U.P. Act for assessment years 1979-80 and 1980-81, stating that the purchase of transformer at concessional r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U.P. Act. 12. In order to answer the dispute between the parties, a reference under Section 4-B of the U.P. Act is necessary. Section 4-B of the Act provides for special relief to certain manufactures. Sub-Section (1) of the said Section speaks of levy of concessional rate of tax on certain goods liable to tax under the provisions of the U.P. Act which are sold, purchased or supplied by the dealer who holds the recognition certificate issued under sub-Section (2) of Section 4-B. Sub-Section (2) of Section 4-B provisions for the grant of such recognition certificate and also explains the expression "goods required for use in the manufacture" by way of an explanation. The relevant provisions of the said Section read as under: "Section 4-B - Specific relief to certain manufacturers (1) * * * (2) Where a dealer requires any goods, referred to in sub-section (1) for use in the manufacture by him in the State, of any notified goods, or in the packing of such notified goods manufactured or processed by him, and such notified goods are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the course of export out of India, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary way of assisting in or contributing to as a subordinate." 16. The meaning of the expression "accessory" has been explained by this Court in M/s. Annapurna Carbon Industries Co. vs. State of Andhra Pradesh., (1976) 2 SCC 273, in light of the question whether "arc carbon" is an "accessory" to cinema projectors or other cinematographic equipment under Item 4 of Schedule I to Andhra Pradesh General Sales Tax Act, 1957 as follows: "10. We find that the term "accessories" is used in the schedule to describe goods which may have been manufactured for use as an aid or addition. A sense in which the word accessory is used is given in Webster's Third New International Dictionary as follows: "An object or device that is not essential in itself but that adds to the beauty, convenience, or effectiveness of something else." Other meanings given there are: "supplementary or secondary to something of greater or primary importance", "additional", "any of several mechanical devices that assist in operating or controlling the tone resources of an organ". "Accessories" are not necessarily confined to particular machines for which they may serve as aids. The same item ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vehicle as a whole. General adaptability may be relevant but may not by itself be conclusive. Take for instance stereo or air-conditioner designed and manufactured for fitment in a motor car. It would not be absolutely necessary or generally adapted. But when they are fitted to the vehicle, undoubtedly it would add comfort or enjoyment in the use of the vehicle. Another test may be whether a particular article or articles or parts, can be said to be available for sale in an automobile market or shops or places of manufacture; if the dealer say it to be available certainly such an article or part would be manufactured for kept for sale only as an accessory for the use in the motor vehicle. Of course, this may not also be a conclusive test but it is given only by way of illustration. Undoubtedly some of the parts like axle, steering, tyres, battery etc. are absolutely necessary accessories for the effective use of the motor vehicle. If the test that each accessory must add to the convenience or effectiveness of the use of the car as a whole is given acceptance many a part in the motor car by this process would fall outside the ambit of accessories to the motor car. That wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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