Hearing-aid accessories exemption applies where dry-cell batteries are imported and sold for that intended use.

Dry-cell batteries imported and sold as hearing-aid accessories were treated as exempt goods under item 41 of the exempted list because their true commercial identity and intended use were as accessories of electrical hearing-aids. The court reasoned that possible alternative uses did not change their character where they were imported and dealt with for hearing-aid use. On that basis, the batteries fell within the exemption and the related turnover was not taxable.

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Issues: Whether dry-cell batteries imported and sold as accessories of hearing-aids were entitled to exemption from sales tax under item 41 of the exempted goods list.

Analysis: Item 41 granted full exemption for the sale of electrical hearing-aids and accessories by any dealer. The decisive consideration was the purpose for which the goods were imported and the manner in which they were intended to be sold. Dry-cells do not cease to be accessories of hearing-aids merely because they may also be capable of other uses. Following the earlier view that hearing-aid accessories remain within the exemption even if they have other possible applications, the batteries in question were found to have been imported and dealt with as hearing-aid accessories.

Conclusion: The batteries fell within the exempt category and were not taxable.

Final Conclusion: The turnover relating to the batteries was exempt and the assessee succeeded.

Ratio Decidendi: Goods imported and sold as accessories of electrical hearing-aids remain exempt if their true commercial identity and intended use are as hearing-aid accessories, notwithstanding possible alternative uses.

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