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of <h1>Taxability of Windscreen Wipers vs. Oil Gauge: Machinery Parts under U.P. Sales Tax Act</h1> The Court held that windscreen wipers were not taxable as machinery parts, but the oil gauge supplied was taxable as a spare part of the machinery under ... - Issues:Interpretation of whether windscreen wipers and oil gauges supplied to Diesel Locomotive Works are taxable as spare parts of machinery under U.P. Sales Tax Act.Analysis:The case involved a dispute regarding the taxability of windscreen wipers and oil gauges supplied to Diesel Locomotive Works under the U.P. Sales Tax Act. The main question was whether these items could be considered spare parts of machinery. The assessee argued that spare parts are integral components necessary for the machinery to function, while the department claimed they were taxable as spare parts. The notification in question exempted turnover in respect of machinery and spare parts not taxable under any other notification. The definition of spare parts from various dictionaries and legal precedents was presented to support the arguments.The Court analyzed the concept of spare parts extensively, citing precedents that emphasized the need for an article to be an extra part of machinery capable of substitution to be considered a spare part. It was clarified that spare parts are essentially parts of machinery that can be replaced or substituted. The distinction between parts and spare parts was discussed, highlighting that spare parts are not separate from parts but are parts themselves. The judgment emphasized that for an article to be a spare part, it must first be considered a part of the machinery. The Court also addressed the argument that an item enhancing efficiency is an accessory, not a spare part, citing relevant cases to counter this claim.In the final analysis, the Court concluded that windscreen wipers were not taxable as machinery parts, but the oil gauge supplied by the assessee was taxable as a spare part of the machinery. The decision was based on the understanding that the oil gauge, being a part of the machinery capable of substitution, qualified as a spare part. The judgment allowed the petition in part, with each party bearing their own costs.
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