Entry tax and incidental goods: mining equipment was taxable, and air-conditioners and motor cars also fell within the taxable category.

Entry tax on goods brought into a local area turns on whether the goods are used in the specified activity as incidental goods. The court distinguished goods used "in" mining from goods used merely "for" mining, holding that plant and machinery, including dumpers, trucks and dozers, are essential to operations but are not incidental goods and are therefore taxable. By contrast, air-conditioners and motor cars were treated as casual or secondary to the business activity and thus fell within the incidental goods category, making them liable to entry tax. The references were answered against the assessee and in favour of the Revenue.

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Issues: (i) Whether plant and machinery including dumpers, trucks and dozers used in mining operations are incidental goods liable to entry tax; (ii) Whether air-conditioners and motor cars are incidental goods liable to entry tax.

Issue (i): Whether plant and machinery including dumpers, trucks and dozers used in mining operations are incidental goods liable to entry tax.

Analysis: Entry tax under the Act applies to goods brought into a local area for specified use, and the definition of incidental goods covers goods other than raw material and packing material used by a dealer in manufacture, processing, mining, or generation or distribution of power. The controlling distinction is between goods used "in" the specified activity and goods used merely "for" it. Plant and machinery, and allied equipment such as dumpers, trucks and dozers, are employed to carry out the mining operation and are necessary for its completion, but they are not themselves incidental goods.

Conclusion: The goods are not incidental goods and are liable to entry tax; this issue is decided against the assessee and in favour of the Revenue.

Issue (ii): Whether air-conditioners and motor cars are incidental goods liable to entry tax.

Analysis: On the same statutory framework, goods that are casual, unimportant, or secondary to the principal business activity fall within the concept of incidental goods. Air-conditioners and motor cars were treated as goods of that character and thus within the taxable category under the Act.

Conclusion: Air-conditioners and motor cars are incidental goods and are liable to entry tax; this issue is decided against the assessee and in favour of the Revenue.

Final Conclusion: The references were answered by holding that the first category of goods is taxable as non-incidental goods and the second category is also taxable as incidental goods, leaving the assessee unsuccessful on the questions referred.

Ratio Decidendi: For entry tax purposes, only goods used in the specified activity as incidental goods are taxable, and equipment essential to carry out the activity but not incidental to it is not excluded from tax merely because it facilitates the business operation.

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