TaxTMI 
TaxTMI 
1994 (4) TMI 355
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....ch 24, 1990, for the assessment year 1985-86 contained in annexure 3, in so far as it relates to the imposition of sales tax on the fuel injection equipments in excess of 6 per cent. They have also prayed for issuance of a writ prohibiting the opposite party No. 2 from assessing the petitioner for the assessment years 1986-87 to 1990-91 on the turnover of fuel injection equipments in excess of 6 per cent, or realising any tax or making recovery of taxes in pursuance of the allotment order dated March 24, 1990, contained in annexure 3. In short the contention of the petitioner is that fuel injection equipment is required for the manufacture of diesel engine and is not a part of the motor vehicle specified in entry 43(1) of the Schedule to....
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....mitted that as the price list mentioned in the catalogue is concerned, it only refers to the various types of diesel engines manufactured by the different customers of the petitioners and the Assistant Commissioner (Assessment) has committed an error of law apparent on the face of the record in relying upon the price catalogue for treating the fuel injection equipment as a part of the motor vehicle. The fuel injection equipment is nothing but a part of the diesel engine and not notified by any notification and is machinery which is not mentioned under any other entry of the Schedule. The word "part" means an integral portion essentially belonging to the main equipment in which it is used. Since the fuel injection equipment manufactured and ....
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....d specific a result.' They had already observed that the word 'machinery' must mean something more than a collection of ordinary tools. The Privy Council case was not a tax case but prima facie the ordinary meaning of the word 'machinery'-and the word 'machinery' is an ordinary and not a technical word-must, unless there is something in the context, prevail in the Indian Income-tax Act also. According to the above definition, a diesel engine is clearly 'machinery'. Indeed, rule 8 of the Income-tax Rules treats aero-engines separately from aircraft. It is true that this rule cannot be used to interpret the clauses in the Act but it does show that components of an aircraft, which are machinery, can be treated separately." In the case....
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.... expressed the view that diesel engines are ordinarily used in motors and motor lorries. That may be so, but the question here is whether the diesel engine sold by the petitioner was capable of use in a motor vehicle and was a component part of a motor vehicle. In Commissioner of Sales Tax v. Pritam Singh (Sales Tax Reference No. 486 of 1965 decided by this Bench on August 6, 1968) [1968] 22 STC 414, we held that an article is a component of another when it forms a constituent part of that other and is essential for completing it. That presumes necessarily that the article as such must in its condition and functioning be capable of use in that other. The Judge (Appeals) has held that the diesel engines sold by the petitioner could ordinaril....
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....d to the engine and it is neither an accessory nor a spare part of the motor vehicle, hence it can only be taxed at the rate of 6 per cent and not at the rate of 10 per cent under entry 43(2) of the Schedule. This aspect of the matter has been admitted by the opposite parties in paragraph 11 of the counter-affidavit where it has been admitted that fuel injection equipment is a part of diesel engine and diesel engine is not specified in any notifications issued under U.P. Sales Tax Act, but, however, it was denied that being so fuel injection equipment is taxable at the rate of 6 per cent under entry 38 of Notification No. 5784 dated September 7, 1981. It is submitted that as the fuel injection equipment is used in trucks, matadors, jeep,....