TMI Blog2017 (3) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof specified in any other entry in this Schedule”. This would clearly go to show that the Schedule Entry C-II-135 read with Notification Entry A-35, as far as bearings are concerned would be the general Entry and C-II-146 would be the specific Entry - the authorities below have correctly classified the bearings sold by the applicant under Schedule Entry C-II-146. Notification Entry A-35 talks about sale or purchases by a registered dealer of tractors specifically designed for agricultural use and components, parts and accessories thereof covered by Entry C-II-135. From a plain reading of the said Notification Entry, it is clear that it applies to sales or purchases only by a registered dealer of tractors specifically designed for agricultural use and the components, parts and accessories thereof. The bearings sold by the applicant would fall under Schedule Entry C-II-146 - application disposed off - decided against applicant-assessee. - SALES TAX REFERENCE NO. 8 OF 2009,9 OF 2009 & 10 OF 2009 - - - Dated:- 28-2-2017 - S. C. DHARMADHIKARI B.P. COLABAWALLA, JJ. Mr. P.V. Surte a/w Mr. Subhash Surte i/b M/s P.V. Surte Co. for the Applicant in all references. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was done on the basis that bearings fell under Entry C-II-146 whether they were supplied as parts of a motor vehicle or parts of an agricultural tractor. (c) Being aggrieved by this, the applicant approached the Deputy Commissioner of Sales Tax (Appeals) Pune. This Appellate Authority confirmed the assessment for the reasons more particularly set out in its detailed order. Thereupon, the applicant filed second appeals before the MSTT. Since, the MSTT was of the opinion that there were conflicting decisions of the Tribunal in the case of M/s Auto Enterprises and M/s Menon Bearings Ltd. respectively, it referred the matter to the larger bench. Finally, on 21st August, 2007, the larger bench decided the issue against the applicant and thereupon the first bench of the MSTT decided the appeals of the applicant on 16th November, 2007 holding against the applicant (as per the decision and ratio of the larger bench). (d) Being aggrieved by the decision of the MSTT holding that the bearings sold as parts of motor vehicles as well as parts of agricultural tractors are liable to tax at 13% ( for F.Y. 1996-97); at 8% (for F.Y. 1997-98) and again at 13% (for F.Y. 1998-99), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors, clearly fell within the purview of Notification Entry A-35. 5. Mr Surte submitted that on the other hand, Entry C-II- 146 refers to bearings of all types including ball bearings or roller bearings and attracted tax at 13%. This rate of tax was reduced to 8% for the period 1st April, 1997 to 31st March, 1999 under Entry-65 of Group-A of the Notification issued under Section 41 of the BST Act. Mr. Surte submitted that the applicant s bearings were sold to motor vehicle manufacturers like M/s Telco Ltd., M/s Maruti Udyog Ltd., M/s Bajaj Ltd. etc. and to tractor manufacturers like M/s Mahindra Mahindra Ltd. and M/s Escorts Ltd. etc. He therefore submitted that the bearings sold by the applicant were parts of a motor vehicle and/or an agricultural tractor and had to be classified under entries C-II-102(2) (as parts of a motor vehicle) and C-II-135 read with the Notification Entry A-35 (as parts of an agricultural tractor). In other words, Mr. Surte contended that the bearings sold by the applicant had to be assessed to tax as auto parts or as the case may be, tractor parts, notwithstanding Entry C-II-146 which specifically dealt with all types of bearings. He submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant entries that would arise for our consideration. Schedule Entry C-II-102 reads as under:- Entry Description of the goods Rate Period 102(1) Motor vehicles including motor cars and motor vehicles primarily designed for the transport of persons or goods, public transport type passenger motor vehicles, special purpose motor vehicles other than those principally designed for transport of persons or goods; motorcycles (including scooters and mopeds and cycles fitted with auxiliary motor, with or without sidecars), chassis of motor vehicle and bodies or tanker built or meant for mounting on chassis of motor vehicles, but excluding tractors specifically designed for agricultural use. 10 percent 01.04.1996 to 31.03.1999 102(2) Components and parts of vehicles specified in sub-entry (1) 10 Percent 01.04.1996 to 31.03.1999 9. As can be seen from the aforesaid Entry, it deals with motor-vehicles including moto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing machinery, components, parts and accessories specified in any other Entry in this Schedule. Notification Entry A-35 deals with the sale or purchases by a registered dealer of tractors specifically designed for agricultural use and the components, parts and accessories thereof covered by Entry C-II-135. Relying upon the aforesaid two entries, Mr Surte would contend that the bearings sold by the applicant assessee to tractor manufacturers such as M/s Mahindra Mahindra Ltd. and M/s Escorts Ltd. would fall under this Notification Entry No. A-35, and therefore, liable to tax at four per cent. To buttress this argument, Mr Surte contended that Entry A-35 was amended in the year 1998. It was only then that bearings, tyres and tubes were specifically excluded from the said Entry. Placing heavy reliance upon this amendment, Mr Surte contended that this was intrinsic evidence to show that bearings sold by the applicant assessee to tractor manufacturers such as M/s Mahindra Mahindra and M/s Escorts Ltd., prior to 15 August, 1998, would fall within the Notification Entry No. A-35 and would, therefore, be taxed at four per cent. 12. The last entries that we need to make a note of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onents, parts of a motor vehicle] or under Entry C-II-135 read with the Notification Entry A-35 [as a components and/or parts of tractors specifically designed for agricultural use]. When there is a specific Entry in the schedule to a Taxing Statute, the same would override a general Entry. In fact, resort should be taken to the general Entry only when a liberal construction of the specific Entry would not cover the goods in question. As far as bearings sold by the applicant are concerned, it can hardly be disputed that Entry C-II-102(2) and C-II-135 read with the Notification Entry A-35 would be general entries in comparision to Entry C-II-146 which specifically deals with all types of bearings. 16. The proposition that where there is a specific Entry in the schedule to a Taxing Statute, the same would override a general Entry, is very well settled and in this regard Mr Sonpal has correctly laid stress on the decision of the Supreme Court in the case of Bradma of India Ltd. (2005) 2 SCC 669 : [2005] 140 STC 17 In this decision the Respondent before the Supreme Court manufactured electronic cash registers. In addition to the usual functions of a cash register, the Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ric covering all species of such items. Given the language of the two entries we fail to understand how the High Court could have come to the conclusion that Entry 97(b) was the specific entry and that Entry 90 was the general entry. Such an interpretation goes against the express language of the two entries. 17. To our mind, the ratio of this judgment would apply to the facts of the present case with full force. Even in the facts of the present case, the Schedule Entry C-II-135 categorically states but excluding machinery and components, parts and accessories thereof specified in any other entry in this Schedule . This would clearly go to show that the Schedule Entry C-II-135 read with Notification Entry A-35, as far as bearings are concerned would be the general Entry and C-II-146 would be the specific Entry. We, therefore, find that the authorities below have correctly classified the bearings sold by the applicant under Schedule Entry C-II-146. 18. There is yet another reason why we have come to the aforesaid conclusion. Notification Entry A-35 talks about sale or purchases by a registered dealer of tractors specifically designed for agricultural use and components, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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