Classification of ordinary pulleys as machine parts rejected; tax at the notified rate did not apply.

Ordinary pulleys used to connect shafts for transmission of power with electrical motors or oil engines were held not to fall within the notification taxing machine parts at 6 per cent. The court treated the classification issue as confined to whether the goods were machine parts under Notification No. ST-7098/X-1012-1965, and, on the factual finding that they were merely ordinary pulleys, rejected that characterization. The alternate reference to hardware was not pursued as a live issue. The result was that the pulleys were not taxable as machine parts at the notified rate.

---

---

Issues: Whether the pulleys manufactured by the assessee were liable to be taxed as machine parts at 6 per cent under Notification No. ST-7098/X-1012-1965, dated 1st October, 1965.

Analysis: The goods in question were found to be ordinary pulleys used for connecting shafts for transmission of power with electrical motors or oil engines. On that factual basis, they could not be treated as machine parts within the relevant notification. The reference to the alternate classification as hardware was not pursued as a live issue, and the question was reframed to the single issue of taxability as machine parts.

Conclusion: The pulleys were not liable to be taxed as machine parts at 6 per cent, and the answer was in the negative in favour of the assessee.

---