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2015 (11) TMI 1390 - RAJASTHAN HIGH COURT

2015 (11) TMI 1390 - RAJASTHAN HIGH COURT - TMI - Rate of tax - Levy of tax on sale of Battery-parts - claim of the assessee was that rate of tax is to be levied treating it to be on the rate applicable on motor-parts - Held that:- even if some parts of Battery or Battery-parts can be said to be sold for other purposes but primarily it is meant for motorcars. - general rate would not be applicable as Batery and its parts in common parlance is said to be fitted in motorcars. In the case of Commis .....

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sed in the manufacture of trucks i.e. a motor-vehicles. - Further decision in the case of Bits & Bites [2011 (3) TMI 1516 - RAJASTHAN HIGH COURT] followed. - Decided against Revenue. - S B Sales Tax Revision Petition No. 297/2011, S B Sales Tax Revision Petition No. 386/2011 - Dated:- 16-10-2015 - J. K. Ranka, J. For the Petitioner : Ms Tanvi Sahai For the Respondent : None ORDER By the Court 1. These two petitions are directed against the order dated 9.9.2003 passed by the Rajasthan Tax Board, .....

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he rate applicable on motor-parts. The matter was carried in appeal before the Dy. Commissioner(Appeals), who allowed the appeals of the respondent and accepted the contention of the assessee that Battery and its parts will fall in the same rate of taxation as that of motor-parts. The Revenue carried the matter in appeal before the Tax Board by filing five appeals, who also upheld the finding recorded by the Dy. Commissioner(Appeals), the department has assailed the said impugned orders of the T .....

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el for the petitioner contended that the order of the Assessing Officer was just and proper and both, the Dy. Commissioner(Appeals) as well as the Tax Board, have not decided the controversy in correct manner. She contended that Battery and Battery-plates (parts) cannot be said to be taken into consideration as motor-parts, and she contended that Battery and its parts are being used for diverse purposes as well and not exclusively to be installed/fitted in a motor-vehicle and, therefore, the sam .....

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onsideration. She further contended that no acceptable evidence was led on record by the assessee to come to the conclusion which has been reached by the Tax Board. 6. None appeared on behalf of the respondent despite service. 7. I have considered the arguments advanced by the counsel for the Revenue, and have perused the impugned order. In my view, the order of the Tax Board is just and proper and is not required to be interfered with. 8. The Tax Board, after analysing the material on record ha .....

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her perkins inlet and exhaust valves sold by the assessee were components of diesel engine or not, and whether particular rate is applicable or not? The Bombay High Court, after analysing the material on record came to the conclusion and opined that the diesel engines of which valves were manufactured by the assessee are component parts used in the manufacture of trucks i.e. a motor-vehicles, and the relevant para is quoted ad infra :- "7. Last argument is equally untenable. Diesel engines, .....

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launches and/or earth-moving machinery was the same as was the requirement of the diesel engine used in the trucks. The case, therefore, has to be proceeded on the basis that diesel engines of which the valves manufactured by the assessee are component parts are used in the manufacture of trucks, i.e., motor vehicles. Apparently we see no reason to hold that a component part of a motor vehicle is not a component part of the motor vehicle. However, on the basis of certain authorities, it was str .....

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distinguishable. In this Court's decision in Koal Sales and Services v. State of Maharashtra [1984] 56 STC 151, it was held that oil engine used as a prime mover in a pumping set used as agricultural machinery would itself constitute machinery and since it is used for agricultural purposes, it would also constitute agricultural machinery. This Court's decision in Commissioner of Sales Tax v. Jayesh (India) Agencies [1984] 57 STC 128 was also relied upon by Shri Patil. In that decision, s .....

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a air-conditioning plant. The above decisions have obviously no bearing on the question involved in this reference." 9. The Bombay High Court in the case of Commissioner of Sales Tax, Maharashtra State, Bombay v. Shri Iron & Metal Works [1995] 98 STC 224, has opined that if the goods are capable of diverse use, user test may not be decisive, but common parlance test is applicable, and taking into consideration the same, one can safely come to the conclusion that Battery and its plates/p .....

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e and after analysing the Notification it was held that rate of 6 pies per rupee will be applicable to the turnover of motor vehicles and their component parts including batteries. Therefore, rate of Battery and its parts was taken as that of motor vehicles. 11. In the case of Vikas Traders v. The State of Gujarat [1976] 37 STC 163, after analysing the entries, the High Court opined as under:- "...If we apply the aforesaid settled test of a component part, it is obvious that a battery is su .....

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mently argued that such an interpretation could not be put on this entry in view of the fact that the batteries were put in the inclusive clause only in the "other articles" by the legislature. That is obviously done ex abundanti cautela for settling doubts, if any. As earlier pointed out, the legislature wanted to put the cataloged articles in this parenthetic inclusive clause on par with the component parts so that they may not be required to fulfill those two tests laid down for &qu .....

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ile considering the case of Constant Voltage Transformers (CVT) and Uninterruptible Power Sources (UPS), whether these accessories of computers will fall with the rate taxable @ 4% as accessories of computers or whether they would be taxable @ 10% in general residuary entry, came up before this court for consideration, and this court held as under :- "19. The contentions of the learned counsel for the Revenue that since they can be used as accessories of other items like refrigerators, TV s .....

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