1992 (12) TMI 205

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.... subject to levy of tax at 13 per cent during 1981-82 and 16 per cent and 12 per cent, as the case may be, during 1982-83 but an unspecified goods to be taxed at 7 per cent for the year 1981-82 and at 8 per cent for the year 1982-83?" Flash-back of the cases: 2.. The periods of assessment relate to 1981-82 and 1982-83. The opposite party is a wholesaler of automobile tyres, tubes and flaps and is having its business at Cantonment Road, Cuttack. Assessments under section 12(4) of the Act had been completed. The Accountant-General, Orissa, in course of audit took objection saying that flap being a component part of motor vehicle, should have been taxed at 13 per cent; but the opposite party had collected and paid tax at 10 per cent on s....

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....he appeals, the petitioner made applications under section 24(1) of the Act and the Full Bench of the Tribunal by majority vide Reference Case Nos. 10 and 11 of 1989 allowed the reference applications and that is how these matters have come. 3.. There is no dispute that by the Orissa Sales Tax (Second Amendment) Rules, 1979, rule 93-1 came to be inserted by which automobile tyres/tubes/flaps became the first point taxable goods with effect from April 1, 1979. In the list of goods subject to sales tax as per serial No. 9, automobile tyres and tubes were taxable at 10 per cent up to March 31, 1982 and at 12 per cent from April 1, 1982 to May 31, 1982 and again at 10 per cent from June 1, 1982. Flap is used inside the tyre but over the t....

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....h reference to its necessity to its effective use of the vehicle as a whole. Flap is commercially a distinct identifiable commodity available for sale in automobile market. The framers when issued the notification with regard to automobile tyres and tubes indicating the rate of tax payable as such goods, it has to be assumed that they were aware of the fact that flap was one of the items of goods determined as the first point taxable goods and it having not been mentioned in the notification as to the rate of tax payable on it, it cannot be said that the framers of notification intended or intend to charge the rate of tax on flap as payable on automobile tyres and tubes. In the absence of any rate of tax payable on flap it has to be take....