ADDISON AND CO LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Leave granted.

(2.) The short question which arises for determination in this Civil Appeal is: Whether the subject tools are in the nature of accessories to machines and, therefore, liable to entry tax

(3.) The main submission of the appellant before us was that the said tools are consumables and, therefore, they cannot be part(s) of the machine nor can they be termed as "accessories". It was submitted that machines like lathe machines and drilling machines are not capable of performing any functions without the subject tools. Before us, it was further submitted that the subject tools are rendered useless after they are used for certain number of times. It is also pointed out that in the past, prior to Assessment Year 2000-2001, the Department has accepted that the test of whether the subject tools constituted consumables was applied by the Department as the relevant test in interpreting Entry 52 of the First Schedule to the Karnataka Tax on Entry of Goods Act, 1979.