1982 (1) TMI 168

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....of motor vehicles, bodies built on chassis of motor vehicles belonging to others (on the turnover relating to bodies), component parts of motor vehicles, all varieties of trailers, by whatever name known, tyres (including pneumatic tyres) and tubes ordinarily used for motor vehicles and trailers (whether or not such tyres and tubes are also used for other vehicles), and articles (excluding batteries) adapted for use generally as parts and accessories of motor vehicles and trailars." The pertinent point on which attention has to be paid is to see whether the articles dealt in by the assessee in this case can be regarded as "articles adapted for use generally as parts and accessories of motor vehicles and trailers". The article in question....

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....d accessories of motor vehicles and trailers" within the meaning of entry 3 of the First Schedule. The Board, however, rejected this contention. The Board happened to deal with this question because the Appellate Assistant Commissioner dealing with the assessee's income for 1972-73 had taken the view that the galvanised steel flexible pipes being sold by the assessee must be taxed at the multi-point rate then prevailing, namely, 3 1/2 per cent, and cannot be brought within the purview of entry 3 of the First Schedule and taxed at 13 per cent single point. Disagreeing with this decision of the Appellate Assistant Commissioner, the Board took suo motu revision proceedings. It was in these proceedings that the Board recorded their determinatio....

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....ch side relied on the factual existence of sales in the returned turnover. We, however, venture to think that what entry 3 demands is not a survey of the assessee's turnover, break-up wise, in order to find out whether the bulk of the sales of this article is directed to dealers of automobile parts so that it can be said that the articles were adapted for use generally as motor vehicle parts or accessories. It seems to us that the enquiry which entry 3 demands is in quite a different sphere. When it is provided that the articles must be adapted for use generally as motor vehicle parts and accessories, what is meant is that in the very line of trade of this article it is by and large being used as motor vehicle part. This would require not s....