Classification of unserviceable batteries turns on true commercial character; specific motor-vehicle and electrical goods entries did not apply.

Imported wet batteries sold as unserviceable goods were held not to fit item 1 of the First Schedule to the Andhra Pradesh General Sales Tax Act, because that entry covered batteries adapted for use in motor vehicles and these batteries were large, heavy and unsuitable for such use. They were also held not to fall within item 38 as electrical goods, since that entry was read narrowly by noscitur a sociis and batteries did not answer its description. The article states that classification must follow the goods' true commercial character and actual use, and where no specific entry applies, the general entry governs.

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Issues: (i) Whether the imported wet batteries sold as unserviceable batteries were classifiable under item 1 of the First Schedule to the Andhra Pradesh General Sales Tax Act as batteries adapted for use as parts and accessories of motor vehicles; (ii) Whether they could instead be treated as electrical goods under item 38 of the First Schedule, or fall under the general entry.

Issue (i): Whether the imported wet batteries sold as unserviceable batteries were classifiable under item 1 of the First Schedule to the Andhra Pradesh General Sales Tax Act as batteries adapted for use as parts and accessories of motor vehicles.

Analysis: Item 1 applied only to batteries used on motor vehicles. The batteries in question were unusually large and heavy, were described in the sale material as salvage or scrap, and were not suitable for use in any motor vehicle. Their size made their use in ordinary motor vehicles unrealistic, and the surrounding circumstances indicated that they were batteries meant for ships or naval use rather than for motor vehicles.

Conclusion: The batteries were not covered by item 1.

Issue (ii): Whether they could instead be treated as electrical goods under item 38 of the First Schedule, or fall under the general entry.

Analysis: Item 38 covered electrical goods, instruments, apparatus and appliances of a kind similar to the associated articles in that entry. A battery was not treated as electrical goods in that sense, and the principle of noscitur a sociis supported a restricted reading of the item. Since the goods did not fall under any specific entry, they attracted the general entry.

Conclusion: The batteries were not classifiable under item 38 and were liable only under the general entry.

Final Conclusion: The assessment based on item 1 could not stand, the demand was liable to be quashed, and the transaction had to be reassessed under the proper general entry.

Ratio Decidendi: Goods must be classified according to their true commercial character and actual use, and a specific tax entry cannot be applied where the goods do not answer its description; a broader residuary or general entry applies only when no specific entry governs the goods.

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