ALLIED AUTO AGENCIES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The only point that arises for consideration in these tax revision cases is whether spark plugs fall within entry 38 of the First Schedule, as it stood at the relevant time. The entry reads as follows :

(2.) The Tribunal has held that they fall within this entry and that view is the subject-matter of challenge herein. The first enquiry in such a case ought to be, what is a spark plug and what is its function ? The Tribunal has held on the basis of the material placed before it that the spark plug is a fitment for conducting high ignition current from a storage battery or a magnet in the combustion chambers of an engine cylinder for conducting high ignition current in the form of an arc jumping between two electrodes which ignite the air fuel-mixture in the engine cylinder. In short, the spark plug is used in every internal combustion engine, whether it is automobile or any other form of internal combustion engine, for creating spark to ignite the fuel within the chamber. For this purpose a gap is provided between two electrodes, one of which is the central electrode and the other is the surrounding electrode, which are separated by insulating material. When the current is made to jump over the gap it creates a spark, which ignites the fuel in the chamber. For the purpose of ensuring proper functioning, the electrodes are encased in insulating material which is generally ceramic material. Though in our minds a spark plug is intimately connected with a car, that does not appear to be the only use, it is put to. It is undoubtedly a part of the electrical system in the car. But the question it is whether for that reason it can be called "electrical goods".

(3.) Mr. Anantha Babu contended that the spark plugs are not electrical goods, because no electrical goods shop sells them and that only automobile shops sell these spark plugs. For this reason alone we are unable to say that it is not electrical goods, because, to take another instance, the bulbs used in a car are also not sold in electrical goods shops, but only in automobile shops. For that reason it cannot be said that the bulbs are not electrical goods. Each case had to be judged having regard to the relevant circumstances.