MADRAS RUBBER FACTORY LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) LEVY of tax on sale of tractor tyres and tubes at rates applicable to "automobile tyres and tubes" during the years 1984-85 and 1989-90, by the sales tax authorities under the Orissa Sales Tax Act, 1947, is under challenge in these two proceedings. Learned counsel for the petitioner argued that tractor tyres and tubes are nothing but components of tractors, and tractors being taxable at 4 per cent. its components are to be taxed at the same rate, more so in view of the specific entry relating to component parts of tractors fixing the same rate of tax as tractors with effect from June 1, 1980. It is further argued that "automobile tyres and tubes" which are taxable at a rate higher than tractors, would not normally and also in the context include tractor tyres and tubes. The point requires careful examination.

(2.) "automobile tyres and tubes" constitute a separate taxable entry with effect from September 1, 1978. The different entries indicating rates applicable to sale of motor vehicles, tractors, their tyres, tubes, spare parts, components and accessories, etc. , prior and subsequent to September 1, 1978, are as follows :

(3.) IT is not disputed that tractor and its trailer are motor vehicles. That being so, spare parts and components of tractor and its trailer were taxable as in Sl. 2 from May 1, 1978 to August 31, 1978 and as in Sl. 4 from September 1, 1978, till a specific entry as in Sl. 6 relating to spare parts and component parts of tractor and its trailer was prescribed to take effect from June 1, 1980. In other words, although with effect from May 1, 1976, tractor and its trailer became taxable as in Sl. 3 at a lower rate of 4 per cent. Their component parts continued to be taxed as in Sl. 2 at higher rate of 13 per cent. from January 1, 1978, till the entry as in Sl. 6 came into effect from June 1, 1980 prescribing tax rate of 4 per cent. Considering the above taxing history, it is apparent that component parts of' tractor and its trailer were considered separate from tyres and tubes of tractor and its trailer, while carving out from Sl. 2 automobile tyres and tubes as in Sl. 5 with effect from September 1, 1978 and from Sl. 4 component parts of tractor and its trailer as in Sl. 6 with effect from June 1, 1980. Consequently, the argument of the learned counsel for the dealer that tractor tyres and tubes are taxable as component parts of tractor is without any substance.