VITHAL CHHAGAN AND SONS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) A very short question arises on this reference, namely, whether wrist watch-cases with chromo-steel back are spare parts of watches within the meaning of entry 10 of Schedule E to the Bombay Sales Tax Act, 1959. The assessee carries on business as a manufacturer of wrist watch-cases and machine tools. The assessee sold seven dozen wrist watch-cases with chromo-steel back under a bill dated 2nd May, 1963, and submitted an application to the Deputy Commissioner of Sales Tax under section 52 for determination of the sales tax payable on the same. The Deputy Commissioner took the view that wrist watch-cases were "spare parts" of watches and fell within entry 10 of Schedule E and were, therefore, taxable at the rate specified in that entry. The assessee's contention was that wrist watch-cases were not "spare parts" of watches within the meaning of entry 10 of Schedule E and since there was no other specific entry covering them, they fell within the residuary entry 22 of Schedule E and since that contention was rejected by the Deputy Commissioner, the assessee preferred an appeal to the Tribunal. The Tribunal also took the same view and hence the present reference at the instance of the assessee.

(2.) THE controversy between the parties centred round the narrow question as to which is the entry under which wrist watch-cases fall : entry 10 of Schedule E or entry 22 of Schedule E. Entry 10 of Schedule E describes the goods comprised in it as "clock, time-pieces and watches and spare parts thereof" while entry 22 of Schedule E is a residuary entry covering "all goods other than those specified from time to time in section 14B and in Schedules A, B, C and D and in the preceding entries." If wrist watch-cases are spare parts of watches, they would come within entry 10 of Schedule E but if they are not, they would, in the absence of any other specific entry covering them, fall within entry 22 of Schedule E. THE question which, therefore, arises for consideration is whether wrist watch-cases can be said to be "spare parts" of watches.

(3.) REFERENCE answered accordingly.