Goods classification under the sales tax schedules turned on specific and general entries, with exempt and third-schedule treatment upheld.

Transmission beltings were treated as cotton fabrics under entry 5 of the Fourth Schedule and therefore remained exempt from tax. Tractor-trailer wheels and axles were held to fall under entry 2(xiv) of the Third Schedule rather than the specific first-schedule entry for tractor and bulldozer parts, because trailers were not covered by that specific entry before the 17 January 1978 amendment. Animal drawn vehicle wheels, axles and trolley were also classified under entry 2(xiv) of the Third Schedule and not as general goods. The classification adopted by the Tribunal was affirmed on all material issues.

---

---

Issues: (i) Whether transmission beltings fell within entry 5 of the Fourth Schedule to the A.P. General Sales Tax Act and were exempt from tax, or were taxable as general goods under section 5(1); (ii) whether tractor-trailer wheels and axles fell under entry 2(xiv) of the Third Schedule or entry 50 of the First Schedule; (iii) whether animal drawn vehicle wheels, axles and trolley fell under entry 2(xiv) of the Third Schedule or were taxable as general goods.

Issue (i): Whether transmission beltings fell within entry 5 of the Fourth Schedule to the A.P. General Sales Tax Act and were exempt from tax, or were taxable as general goods under section 5(1).

Analysis: Transmission beltings had already been treated as cotton fabrics within entry 5 of the Fourth Schedule in an earlier decision. The same classification was followed, and the goods were held to answer that exempt entry rather than the general charging provision.

Conclusion: Transmission beltings are covered by entry 5 of the Fourth Schedule and are exempt from tax.

Issue (ii): Whether tractor-trailer wheels and axles fell under entry 2(xiv) of the Third Schedule or entry 50 of the First Schedule.

Analysis: Entry 2(xiv) was treated as the general entry, while entry 50 was the specific entry relating to parts of tractors and bulldozers. Before the amendment of 17 January 1978, trailers and their parts and accessories were not included in entry 50, and a trailer was not regarded as an inseparable or inherent part of a tractor. Goods not brought within the specific first schedule entry therefore fell within the third schedule entry.

Conclusion: Tractor-trailer wheels and axles fall under entry 2(xiv) of the Third Schedule and not under entry 50 of the First Schedule.

Issue (iii): Whether animal drawn vehicle wheels, axles and trolley fell under entry 2(xiv) of the Third Schedule or were taxable as general goods.

Analysis: On the nature of the goods, they were held to fall within the wording of entry 2(xiv) of the Third Schedule. The departmental contention that they were general goods was rejected.

Conclusion: Animal drawn vehicle wheels, axles and trolley fall within entry 2(xiv) of the Third Schedule and are not taxable as general goods.

Final Conclusion: The classification adopted by the Tribunal was affirmed on all material issues, and the tax revision failed.

Ratio Decidendi: Where a specific schedule entry does not cover the goods, they fall to be classified under the appropriate general entry, and exempt or specific entries must be applied according to the true commercial character of the goods.

---