Integral component classification: a sewing machine stand follows the concessional tax rate of the sewing machine itself.

A sewing machine stand designed exclusively for use with a sewing machine and necessary for its effective operation was treated as part and parcel of the machine. The Court held that it should be taxed at the same concessional rate applicable to sewing machines, and not under the residuary entry, because a contrary classification would defeat the purpose of the concessional notification. The key principle is that an accessory or component integral to the functioning of the principal item may follow the tax treatment of that principal item.

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Issues: Whether a stand of a sewing machine is an integral part of the sewing machine so as to be taxable at the same concessional rate applicable to sewing machines.

Analysis: The stand was found to be designed exclusively for use with a sewing machine and to be necessary for its effective operation. On that basis, it was treated as part and parcel of the sewing machine. The Court rejected the attempt to classify the stand under the residuary entry, holding that such a construction would defeat the purpose of the concessional notification applicable to sewing machines.

Conclusion: The stand of a sewing machine is taxable at the same rate as the sewing machine and not under the residuary entry.

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