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Issues: Whether axles sold by the assessee were covered by entry 1, Part I of Schedule II to the M.P. General Sales Tax Act, 1958, or by entry 1(iii) of Part II of that Schedule as spare parts of motor vehicles.
Analysis: The relevant State entry in Part I incorporated by reference the goods of special importance specified in section 14 of the Central Sales Tax Act, 1956, which included wheels, tyres, axles and wheel sets. The competing entry in Part II covered spare parts and accessories of specified motor vehicles. Reading the two entries together, axles falling within section 14 of the Central Sales Tax Act, 1956 were treated as specially specified goods taxed at the concessional rate under Part I and not as general spare parts under Part II. The construction avoiding double taxation of the same goods was preferred, and in a fiscal statute the interpretation favourable to the assessee was adopted.
Conclusion: Axles were covered by entry 1 of Part I of Schedule II to the M.P. General Sales Tax Act, 1958 and not by entry 1(iii) of Part II. The answer was given in favour of the assessee.
Ratio Decidendi: Where a fiscal statute contains a specific entry incorporating goods of special importance from another statute, that specific classification prevails over a broader spare-parts entry, and ambiguity must be resolved in favour of the assessee to avoid double taxation.
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