Tax classification of tool-bits and jobber-drills upheld under specific schedule entries, excluding residuary treatment.

Unchallenged departmental determinations under section 62 were treated as binding on the revenue, so the earlier classification of tool-bits under entry 3(ix) of Schedule II, Part A was preserved. Jobber-drills were found to be fitted into machinery and used as part of speed drilling machines, bringing them within entry 16(1) of Schedule II, Part A and the related exemption notification under section 49(2). On that basis, the Tribunal's classification was upheld and both items were placed outside the residuary entry in Schedule III.

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Issues: Whether the sales of tool-bits and jobber-drills were classifiable under the specific entries in Schedule II, Part A, and the notification issued under section 49(2), or under the residuary entry in Schedule III; and whether earlier unchallenged departmental determinations under section 62 bound the Revenue.

Analysis: The Court noted that under section 62 of the Gujarat Sales Tax Act, 1969, the Commissioner's determination on disputed questions is binding unless challenged in appellate proceedings. The Department's earlier orders, which had held tool-bits to fall under entry 3(ix) of Schedule II, Part A, remained unchallenged and therefore bound the State sales tax authorities. As to jobber-drills, the Court accepted that they were fitted into machinery and used as part of speed drilling machines, so they functioned as part of the machinery and could also fall within the exemption notification relating to spare parts and accessories of machinery covered by entry 16(1) of Schedule II, Part A.

Conclusion: The classification adopted by the Tribunal was upheld. Tool-bits were held taxable under entry 3(ix) of Schedule II, Part A, and jobber-drills were held to fall under entry 16(1) of Schedule II, Part A read with the notification under section 49(2), not under the residuary entry.

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