RAJ BROTHERS AGENCIES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) IN all these tax revision cases a common question of law arises. The two are petitioners in these cases have manufactured and sold battery plates. They claimed that in respect of the turnover relating to these sales, they had to be assessed under section 3 (1) at multi-point. But the assessing officer was of the view that it is liable to be taxed under entry 3-A of the First Schedule on the first sale in the State. This order was confirmed in appeal by the Appellate Assistant Commissioner. On a further appeal, while agreeing with the contention of the assessees that the battery plates cannot fall under item 3-A of the First Schedule, the Tribunal held that it is liable to be taxed at single point on the first sale in the State under entry 41 of the First Schedule. It is the correctness of this view of the Tribunal, that is questioned in these batch of tax cases. The Tribunal had brought it under item 41 on the ground that the battery plates manufactured and sold by the assessees were accessories to batteries which are electrical goods and that, therefore, liable to be taxed under entry 41 only and not under section 3 (1) at multi-point. The battery plates which were sold by the assessees in question are used in batteries as component parts. Originally, the batteries adapted for use as parts and accessories of motor vehicles were included in item 3 of the First schedule. Later on by amending Act No. 7 of 1965, the original item 3 was amended excluding batteries from that entry and bringing it as a separate entry 3-A, which reads as follows : "batteries (excluding dry cells ). "

(2.) BY a further amendment dry cells were brought under a separate entry as item 3-B of the First Schedule. At that stage, item 41, which dealt with electrical goods and its accessories in general, was also amended by including the word "other than those specifically mentioned in this schedule" in the appropriate place. Items 3-A and 41 were again amended by tamil Nadu Act No. 15 of 1975, which came into force with effect from 3rd march, 1975. Under the amended entry, item 3-A reads "electric storage batteries and parts thereof including containers, covers and plates" *