Court affirms sale of batteries under specific tax entry, upholding Tribunal decision.

The Court held that sales of batteries, whether unchanged or charged, are covered under entry 42B of Schedule C of the Bombay Sales Tax Act, 1959. The Tribunal's decision was upheld, as the batteries fall under the specified entry without needing to meet additional tests. The Court found the Tribunal justified in not remanding the case, as both charged and unchanged batteries are considered under entry 42B. Consequently, the Tribunal's decision was upheld with no order as to costs.

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Issues Involved:
1. Whether the sales of batteries, whether unchanged or charged, are covered under entry 42B of Schedule C appended to the Bombay Sales Tax Act, 1959.
2. If uncharged (dry) batteries are not covered under entry 42B, whether the Tribunal was justified in not remanding the case for determining whether the sales of batteries made by the applicant were the sales of unchanged batteries.

Summary:

Issue 1: Coverage of Batteries under Entry 42B of Schedule C
The Tribunal held that the sales of Amco batteries, whether unchanged or charged, fall under entry 42B of Schedule C of the Bombay Sales Tax Act, 1959. The Tribunal noted that the dealer had collected and paid tax at 10% under entry 42B, indicating that the dealer treated the sales as falling under this entry. The relevant entry 42B specifies "Component parts of motor vehicles... and other articles (including rubber and other tyres and tubes and batteries) adapted for use as parts and accessories of such vehicles." The Court concluded that the legislature intended to include batteries in this entry without requiring them to meet additional tests of adaptation or exclusion. The Court also referenced the legislative intent to extend the meaning of "other articles" to include batteries, making them on par with component parts of motor vehicles. Therefore, the batteries sold by the dealer, used in motor vehicles, are covered under entry 42B.

Issue 2: Justification for Not Remanding the Case
Given the affirmative answer to the first question, the second issue does not arise. The Court found that the Tribunal was justified in its decision, as the batteries, whether charged or unchanged, fall under entry 42B. The Tribunal had rightly pointed out that it was not established that only unchanged batteries were sold by the dealer. The Court emphasized that a battery, to be a working battery, must be charged, and the charging process is intrinsic to its functionality, not an adaptation for use as a motor vehicle part.

Conclusion:
The reference was answered affirmatively for the first question, confirming that both charged and unchanged batteries fall under entry 42B of Schedule C. Consequently, the second question did not arise, and the Tribunal's decision was upheld with no order as to costs.

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