RASHMI ENTERPRISES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE following question of law has been referred to this Court by the Gujarat Sales Tax Tribunal, Ahmedabad, under section 69 of the Gujarat Sales Tax Act, 1969, hereinafter referred to as "the Act". " Whether, in the facts and circumstances of the case, the Tribunal was justified in holding that the sale of "two-side open wooden industrial trolley" made by the applicant in terms of its sale bill No. B/010-82, dated September 4, 1982 to M/s. Jyoti Processors is covered under entry 13 of Schedule III appended to the Gujarat Sales Tax Act, 1969, and not under entry 16 (1) of Schedule II, Part A appended thereto or under entry 36 to the Schedule appended to the Government notification issued under section 49 (2) of the Act ?"

(2.) THE following are the relevant facts in brief : THE appellant, M/s. Rashmi Enterprises, which is a dealer registered under the Act, is doing business of manufacturing industrial trolleys and parts of textile machinery. It sold "roller face industrial batching trolley" to M/s. Raipur Mills Ltd. , Ahmedabad, and also sold "two-side open wooden industrial trolley" to M/s. Jyoti Processors. In respect of these two sales the applicant filed an applicant before the Deputy Commissioner of Sales Tax under section 63 of the Act for determination of the rate of tax applicable to the said two sales. According to the applicant, the trolley sold to M/s. Raipur Mills Ltd. and M/s. Jyoti Processors were machinery used in the manufacture of goods and, therefore, they were covered by entry 16 (1) of Schedule II, Part A to the Act, and even alternatively, according to the applicant, the said trolley could be said to be accessories of machinery covered by entry 36 of the exemption notification. THE Deputy Commissioner accepted the applicant's plea in respect of "roller face industrial batching trolley" by holding it is machine, but held that "two-side open wooden industrial trolley" was neither machinery used in the manufacture of goods nor it was accessory of the machinery and so the said trolley was covered by residuary entry 13 of Schedule III to the Act.

(3.) THE relevant entry 16 of Schedule II, reads as under : Entry 16 : (1) Machinery used in the Six paise in Six paise in manufacture of goods the rupee. the rupee. excluding machinery specified in any other entry in this or any other Schedule. (2) Electric motors and spare parts and accessories thereof and oil engines. THE residuary entry No. 13 of Schedule III reads as under : Entry 13 : All goods other than those Seven paise in Seven paise in specified from time to time in the rupee. the rupee. sections 18, 19a and 19b and in Schedules I and II and in the preceding entries.