Concessional sales tax for component parts used in manufacture applies when accessories form identifiable constituents of the finished product.

Section 5(3A) of the Karnataka Sales Tax Act grants concessional tax where goods sold are listed in the Second Schedule, sold to a registered dealer, and used as a component part of other Second Schedule goods manufactured inside the State for sale. On the stated facts, plates used in switch gear boxes were treated as accessories under item 61, and the purchaser used them in manufacturing electric switch gears, also falling under item 61. Applying the statutory explanation of "component part" as an identifiable constituent forming part of the finished product, the turnover was covered by the concessional provision and the assessment was required to be revised accordingly.

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Issues: Whether the turnover on plates used in switch gear boxes sold to a registered dealer for use in manufacturing electric switch gears was entitled to concessional tax under section 5(3A) of the Karnataka Sales Tax Act.

Analysis: Section 5(3A) grants a concessional rate where the goods sold are mentioned in the Second Schedule, are sold to a registered dealer, and are used by the purchaser as a component part of other goods in the Second Schedule intended to be manufactured inside the State for sale. The goods sold were found to be accessories falling under item 61 of the Second Schedule, and the purchaser used them in the manufacture of electric switch gears, which also fell under item 61. The explanation to section 5(3A) defines component part as an article forming an identifiable constituent of the finished product and going to make up the finished product. The goods were held to satisfy that definition.

Conclusion: The petitioner was entitled to the concessional rate under section 5(3A), and the turnover was covered by that provision.

Final Conclusion: The assessment had to be revised to extend the statutory concession on the disputed turnover, and the petition succeeded.

Ratio Decidendi: Goods sold as accessories qualify as component parts for concessional taxation when they form identifiable constituents of the finished product manufactured inside the State for sale.

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