Concessional sales tax on component parts is limited to direct parts of scheduled goods, not parts of parts.

Concessional sales tax under section 5(3A) of the Mysore Sales Tax Act, 1957 applied only where the goods sold were themselves listed in the Second Schedule and were used as direct component parts of other scheduled goods. A component part was treated as an identifiable constituent of the finished product, and the provision did not extend to a component part of a component part. Felt washers sold for use in micro filters did not qualify as component parts of motor vehicles, because the filters were only intermediate components. The article confirms that the concessional chain cannot be extended beyond direct component parts of the scheduled finished goods.

---

---

Issues: Whether the assessee was entitled to the concessional rate of tax under section 5(3A) of the Mysore Sales Tax Act, 1957 on sales of felt washers as component parts.

Analysis: The concessional provision applied only where the goods sold were goods mentioned in the Second Schedule and were sold to a registered dealer for use as a component part of other goods mentioned in that schedule. The expression "component part" was defined as an article forming an identifiable constituent of the finished product. Felt washers sold by the assessee were not component parts of motor vehicles, but only component parts of micro filters, which themselves were component parts of motor vehicles. The Second Schedule did not contemplate a further concessional chain for a component part of a component part. The cited schedule entries dealing with refrigerators and wireless reception instruments also showed that the benefit was intended only for direct component parts of the finished goods listed in the schedule.

Conclusion: The assessee was not entitled to the concessional rate under section 5(3A); the revisionary order and the Tribunal's decision were correct.

Ratio Decidendi: Section 5(3A) applies only to direct component parts of goods specifically listed in the Second Schedule and does not extend to component parts of component parts of the finished product.

---