Full Judgment Text
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PETITIONER:
ANNAPURNA CARBON INDUSTRIES co.
Vs.
RESPONDENT:
STATE OF ANDHRA PRADESH
DATE OF JUDGMENT09/03/1976
BENCH:
BEG, M. HAMEEDULLAH
BENCH:
BEG, M. HAMEEDULLAH
RAY, A.N. (CJ)
SINGH, JASWANT
CITATION:
1976 AIR 1418 1976 SCR (3) 561
1976 SCC (2) 273
CITATOR INFO :
RF 1991 SC1017 (2)
ACT:
Andhra Pradesh General Sales Tax Act, 1967. Schedule 1,
Entry 4-Arc ‘Carbons. if fall under entry.
HEADNOTE:
Entry 4 of the I Schedule of the Andhra Pradesh General
Sales Tax Act, 1957, reads: Cinematographic equipment
including...parts and accessories required for use
therewith.
on the question whether Arc Carbons, known as ’Cinama
Arc Carbons’ - manufactured by the appellant fall under the
entry and their sales were, there fore, rightly subjected to
sales tax.
^
HELD: The meaning of an entry can only be
satisfactorily determined in the light of the language of
the entry itself considered in the context in which it
occurs. and cases relating to totally different entries will
have- only a very remote bearing. Entry 4 occurs in a
Schedule of taxable goods. When it was intended to confine
an entry to particular gadgets and ’parts thereof’ the entry
said so. Entry 4, however, includes ’parts’ as well as
’accessories’. The term ’accessories’ is used to describe
goods which may have been manufactured for use as an aid or
addition to particular machines, though, they may serve as
aids to other kinds of instruments also. But, this entry and
other entries use the expression ’required for use
therewith’. The description of the goods in these entries
indicates that the expression has been employed for
equipment or accessories connected with the main purpose.
Therefore, it is its general of predominant use that
determines the category in which an article will fall.
[563D-F, G; 564B-C]
In the present case, the main use of Arc Carbons was
proved to be that of production of powerful light used in
projectors in Cinemas. The fact that they can also be used
for other purposes such as for search lights etc., will not
detract from their classification under Entry 4. The
classification is determined by their ordinary or common
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known purpose or user which is evident from he fact thy are
known as ’cinema Arc Carbons’ in the market. [564 F-H]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 630-631
of 1971.
Appeals by Special Leave from the Judgment and order
dated the 19-1-1970 of the Andhra Pradesh High Court in Tax
Revision Cases Nos 46 and 47 of 1969.
V. S. Desai, Mrs. Vimla Markandeyulu and G. N. Rao for
the Appellant.
P. Ram Reddy and P. P. Rao for the Respondents.
The Judgment of the Court was delivered by
BEG, J. The short question before us in these appeals
by special leave, is whether sales of Arc carbons, known as
"Cinema Arc Carbons", manufactured by the appellant company,
were rightly subjected to sales tax for two assessment years
1965-66 and 1966-77 on the ground that they fall under entry
No. 4 of the 1st Schedule of the Andhra Pradesh General
Sales Tax Act, 1957, (hereinafter referred to as ’the Act’).
This entry reads as follows:
"Cinematographic equipment, including cameras,
projectors, and sound recording and reproducing
equipment
562
lenses films and parts and accesories required for use
their with-
As indicated above, the very name of the Arc Carbons,
as commercial commodities, seems to attach the word "Cinema"
to them because of the use to which they are generally put.
The High Court referred to the fact that the appellants had
not produced their account books to show that they had been
purchased by persons other than those who ran cinemas or for
any other use. Of course, it is very difficult to identify a
taxable commodity merely by the use to which it may be put.
Nevertheless, it appears that the entry under consideration
links the taxable object with its general or ordinary use.
The taxing authorities were, therefore, compelled to
consider the use which is generally made of the arc carbons.
They had concluded that the common or ordinary use of the
arc carbons was that they exuded their power foul light
cast, through the projectors, on cinema screens.
It was pointed out that the Sales Tax Appellate
Tribunal, the final departmental authority under the Act,
had allowed an application for adducing expert evidence to
determine the question whether arc carbons manufactured by
the appellant company could be covered by the entry under
consideration. It, however, appears that, before further
evidence could be taken, at the appellate stage, on the
subject, a decision of the Andhra Pradesh High Court, in the
State of Andhra Pradesh v. Srimathi Nidmarthi Saraswathi
Devi(1), was brought to the notice of the Tribunal. There,
the High Court had held that such arc carbons are covered by
the 4th entry in the 1st Schedule of the Act. Hence, the
Tribunal dismissed the appeal without taking further
evidence.
In the High Court, two decisions cited on behalf of the
appellants were: Deputy Commissioner of Commercial Taxes,
Madhurai Division, Madhurai v. Ravi Auto Stores(2), and
State of Madras v. Indian oxygen Ltd. (3). The High Court
pointed out that in both these cases what was decided was
whether "welding electrodes", considered by themselves, were
"electrical goods" falling within entry 41 of Schedule 1 of
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the Madras General Sales Tax Act. It was held, in these
cases, that they were only copper rods which were melted by
electrical power in the process of welding. Neither the use
of the term "electrode" to describe them, suggesting a
connection with electricity, nor their utilisation in a
process involving application of electrical power could
convert them into "electrical goods" as contemplated by the
entry in the Madras Act. The High Court rightly observed
that these decisions had no bearing whatsoever upon the very
different entry in a schedule of an entirely different Act
of a different State.
The same question has been argued before us with the
help of some more cases to which the same criticism applies.
The additional cases cited before us were: Pashabhai Patel &
Co.(P) Ltd. v. Collector of Sales Tax, Maharashtra State(4),
where it was held a "tractor"
(1) T.R.C. No. 26 of 2962 (decided on 9th August, 1963)
(2) (1968) 22 S.T.C. 172 (Madras) (3) (1968) 22 S.T.C.
476 (Madras)
(4) (1964) 15 S.T.C.32.
563
is not "agricultural machinery", within the meaning of entry
9 in Schedule of the Bombay Sales Tax Act, 1953; Agrawal
Brothers v. Commissioner of Sales Tax, Madhya Pradesh(1);
where it was also held that a "tractor", which is "nothing
but a self-propelled vehicle capable of pulling a load", or
"traction" does not acquire the character of "agricultural
machinery or implement" merely because when used on
agricultural land it is used also to draw certain
agricultural implements like a plough; The State of Mysore
v. Mores (India) Ltd.(2), where it was held that a
typewriter ribbon is not an essential part of a type writer
so as to attract the tax under entry 18 of the second
schedule to - the Mysore Sales Tax, Act, 1957, Commissioner,
Sales Tax, U. P. v Free India Cycle Industries(3), where it
was held that rexine saddle covers used also for bicycle
seats are not covered by entry No. 34 introduced by Section
3A of the U.P. Sales Tax Act, 1948, as modified
subsequently, which read: "bicycles, tricycles, cycle
rickshaws and perambulators and parts and accessaries
thereof other than tyres and tubes"; The Madhya Pradesh
State Co-operative Marketing Society, Jabalpur v. The
Commissioner of Sales Tax, M.P. Indore(4), where it was held
that oil-engines and pumps", which are not known in the
commercial world as "agricultural machinery" could not be
covered by an entry meant for goods sold for agricultural
purposes simply because some of them are also sold to
agriculturists for agricultural purposes.
We do not think that any useful purpose is served by
multiplying cases relating to entries which are so very
different and could have only a very remote hearing, if
any, upon any reasoning which could be adopted to support
the submission that the arc carbons, under consideration
here, fall within the relevant entry 4 of Schedule 1 of the
Act. The meaning of this entry can only be satisfactorily
determined in the light of the language of the entry itself
considered in the context in which it occurs.
The entry No. 4 occurs in a schedule in which
descriptions of goods to be taxed indicate that the
expression "required for use there with" has been employed
for equipment or accessories connected with the main
purpose. For instance, in entry No. 5 the expression occurs
at the end as follows:
"Photographic and other cameras and enlargers,
films and plates, paper and cloth and other parts and
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accessories required for use therewith".
Apparently, the deciding factor is the predominant or
ordinary purpose or use. It is not enough to show that the
article can be put to other uses also. It is its general or
predominant user which seems to determine the category in
which an article will fall.
The first entry in the schedule relates to "motor
vehicles" and includes "component parts of motor vehicles"
and "articles (including batteries) adapted for use as parts
and accessories of motor vehicles." but excludes certain
other articles by putting in the words "not being such
articles as are ordinarily also used for other purposes than
as
(1) (1965) 16 S.T.C. 860. (2) (1970) 26 S.T.C. 87.
(3) (1970) 26 S.T.C. 428. (4) (1971) 27 S.T.C. 45.
564
part and accessories of motor vehicles". Entry No. 2,
relating to refrigerators, air conditioning plants covers
also "component parts thereof". Again, entry No. 3, for
"wireless reception instruments and apparatus" includes
"electrical valves, accumulators, amplifiers and loud
speakers and spare parts and accessories thereof’’. The
words "parts thereof" are used in several entries, such as
entry No. 6 for clocks, time-pieces and watches, entry No.
10 for dictaphones and other similar apparatus for recording
sound, and entry No. 11 for sound transmitting equipment
such as telephones and loud-speakers.
our object in indicating the nature of entries, amdist
which entry No. 4 occurs, is to show that some precision has
been attempted in making the entries. When it was intended
to confine the entry to particular gadgets and "parts
thereof" the entry said so. Of course, even where an entry
relates to parts manufactured for use for a particular kind
of instrument of gadget only, the article, manufactured to
serve as a part of a particular kind of apparatus, would not
cease to be covered by the intended entry simply because a
purchaser makes some other use of it. We have to find the
intention of the framers of the schedule in making the entry
in each case. The best guide to their intentions is the
language actually employed by them.
We find that the term "accessories" is used in the
schedule to describe goods which may have been manufactured
for use as an aid or addition. A sense in which the word
accessory is used is given in Webster’s Third New
International Dictionary as follows: "all objects or device
that is not essential in itself but that adds to the beauty,
convenience, or effectiveness of something else". Other
meanings given there are: "supplementary or secondary to
something of greater or primary importance"; "additional";
"any of several mechanical devices that assist in operating
or controlling the tone resources of an organ."
"Accessories" are not necessarily confined to particular
machines for which they; may serve as aids. The same item
may be an accessory of more than one kind of instrument.
It will be noticed that the entry we have to interpret
includes parts" as well as "accessories" which are required
for use in projectors or other cinematographic equipment. We
think that the Andhra Pradesh High Court correctly held that
the main use of the arc carbons under consideration was duly
proved to be that of production of powerful light used in
projectors in cinemas. The fact that they can also be used
for search lights, signalling, stage lighting, or where
powerful lighting for photography or other purposes may be
required, could not detract from the classification to which
the carbon arcs belong. That is determined by their ordinary
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or commonly known purpose or user. This, as already observed
by us, is evident from the fact that they are known as
"cinema arc carbons" in the market. This finding was enough,
in our opinion, to justify the view taken by the Andhra
Pradesh High Court that the goods under consideration are
covered by the relevant entry No. 4.
Consequently, we dismiss these appeals with costs.
V.P.S. Appeals dismissed.
565