M SALIM Vs. STATE OF KERALA

JUDGEMENT

(1.) IN this revision application filed under section 41 of the Kerala General Sales Tax Act, 1963 (in short, "the Act"), question raised is the rate at which "seat cover for motor vehicle" is to be taxed. The relevant assessment year is 1993-94. Factual position which is undisputed is as follows : Assessee is a manufacturer of seat covers for motor vehicles. Tax was levied by the assessing officer at the rate of 15 per cent on a sales turnover of seat covers amounting to Rs. 4,75,880. The period for which the rate was applied is from April 1, 1993 to December 31, 1993. According to the assessee, the rate is 6 per cent. Appeals before the Appellate Assistant Commissioner, Kollam, and before the Kerala Sales Tax Appellate Tribunal, Thiruvananthapuram (in short, "the Tribunal") did not yield any relief for the assessee.

(2.) IN support of the revision application, it is submitted that entry No. 86 of the First Schedule originally provided rate of tax at the rate of 15 per cent. The said entry, inter alia, related to "spare parts and accessories". Therefore, both categories of goods were covered under a common head. Subsequently, by S. R. O. No. 487 of 1993, "spare parts" were made taxable at the rate of 6 per cent. Subsequently, with effect from January 1, 1994 vide S. R. O. No. 1728 of 1993 specific entry relating to "accessories" was introduced and articles became taxable at the rate of 6 per cent. Since the broad group and head was one, different rates could not have been either conceived or provided for. Motor seat covers are accessories and, therefore, there is no reason to adopt a different rate for the period in question from April 1, 1993 to December 31, 1993. Learned counsel for the Revenue submitted that in different parts of the Schedule, different tax rates are provided for. Merely because of subsequent rate of 6 per cent has been prescribed for accessories, that cannot be any ground to hold that from April 1, 1993 also the said rate is applicable. IN order to appreciate the rival submissions, entries as prescribed at different times need to be noted. Original entry No. 86 reads as follows : ------------------------------------------------------------------------ "sl. Description of goods point of levy Rate of No tax (per cent) ------------------------------------------------------------------------ 86. Motor vehicles, chassis of At the point of 15" motor vehicles, motor first sale in the cycles, motor cycle State by a dealer combinations, motor scooter, who is liable to mopeds, motorettes, three tax under wheelers, motor vessels, section 5. motor engines, trailers, motor bodies built on chassis of motor vehicles, bodies built on motor vessels or engines and spare parts and accessories thereof.------------------------------------------------------------------------ By S. R. O. No. 487/93 rates were modified and entry No. 17 in S. R. O. reads as follows : ------------------------------------------------------------------------ "sl. No. Description of goods Rate of tax Existing reduced (per cent) ------------------------------------------------------------------------ 17 Motor spare parts including spare 15 6" parts for tractor.------------------------------------------------------------------------ Subsequently, S. R. O. No. 1728/93 was issued which superseded the aforesaid S. R. O. No. 487/93. Sl. No. 38 of the entry reads as follows : ------------------------------------------------------------------------ "sl. No. Description of goods Rate of tax Existing reduced (per cent) ------------------------------------------------------------------------ 38 Motor vehicle spare parts and 15 6" accessories excluding tyres, tubes, flaps and battery for petrol and diesel driven vehicles including tractor, bulldozer and power tiller.------------------------------------------------------------------------ The stand of the assessee that there was bona fide omission to include the word "accessory" is clearly without any foundation. It is for the Government to specify the rates. No material whatsoever has been placed before us to show that a different intention existed. The further question as raised is whether seat covers come within the meaning of "accessory". IN Webster's Comprehensive Dictionary INternational, Vol. I, the word "accessory" has been defined as (1) a thing that aids subordinately; an adjunct; appurtenance; accompaniment such items of appeal as complete an outfit, (2) aiding the principal design, or assisting subordinately the chief agent and (3) contributory; supplemental; additional. This definition was approved by the apex Court in Annapurna Carbon INdustries Co. v. State of Andhra Pradesh [1976] 37 STC 378 at page 381, while examining the question whether "arc carbon" is an "accessory' to cinema projectors or other cinematographic equipment under item 4 of Schedule I to the Andhra Pradesh General Sales Tax Act, 1957, and laid the rule thus : " 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 may be an accessory of more than one kind of instrument. "