Composite sale of tractors with fitted items falls under the specific tractor entry, not the residuary tax rate.

Tractors sold as a single composite unit with fitted items such as towing hooks, hoods and mudguard-sheets were treated as a sale of the tractor itself, not as separate sales of accessories. Because the fitted items were supplied as part of the unit and no competing specific entry for accessories required a different classification, the specific entry for tractors and spare parts thereof prevailed over the residuary entry. The residuary rate could not be applied by artificially bifurcating the transaction. The tax classification view favouring the higher rate was rejected, and the assessee obtained relief on classification.

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Issues: Whether tractors sold as a single unit with fitted items such as towing hooks, hoods, mudguard-sheets and similar accessories were covered by the specific entry for tractors and spare parts thereof, or were liable to be split up and taxed partly under the residuary entry.

Analysis: The transaction was found to be a sale of the tractor as a whole, with the fitted items supplied as part of that unit and not as separate sales. The items were of a kind used in a tractor, and there was no competing specific entry for accessories requiring a distinction between parts and accessories. The residuary entry could be invoked only if the transaction did not fall within the specific entry. On that basis, there was no justification for bifurcating the sale and applying the higher residuary rate. The earlier Division Bench view supporting treatment of spare parts supplied with the tractor as covered by the tractor entry also supported this approach.

Conclusion: The sale was covered by the specific entry for tractors and spare parts thereof and was not liable to split taxation under the residuary entry. The view taken against the assessee on the higher rate was incorrect.

Final Conclusion: The revision succeeded and the assessee obtained relief on the tax classification issue.

Ratio Decidendi: Where goods are sold as one composite unit and the fitted items are supplied as part of the tractor itself, the specific entry for tractors and spare parts thereof prevails over the residuary entry, and the sale cannot be artificially bifurcated for a higher rate of tax.

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