2014 (5) TMI 759

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....pare parts and accessories. In respect of sales of rubber belts, the Revenue took the plea that fan belts sold to automobiles, two wheelers and tractors are assessable as rubber products under Entry 55 of I Schedule upto 11.3.1993. Thereafter under Entry 27 Part D of the I Schedule. The assessee contested the same by contending that the sale of fan belts to heavy vehicles, two wheelers and tractors are not the same as rubber products but are to be taxed as per the rate of the automobile parts and accessories under Entry 3 of Schedule I. The assessee contended that upto 11.3.1993, the sale of automobile spare parts were to be assessed under Entry 3 of the First Schedule. From 12.3.1993, the same were assessable under Part D of the I Schedule....

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....3 and thereafer from 12.3.93, the Tribunal pointed out that the question of treating the sale of rubber belts as rubber products falling under Entry 50 did not arise. The Tribunal pointed out that Entry 50 related to rubber products like conveyor, transmission or elevator belts or belting of rubber. The said entry has no relevance to the fan belts used particularly for cars, two wheelers and tractors, which are parts and accessories of the respective vehicles. The Tribunal pointed out that the assessee was selling automobile parts only and not dealing in transmission belts or conveyor belts. The Tribunal referred to the evidence produced by the assessee from M/s.Fenner (India) Limited, who are manufactures and suppliers of auto belts, fan b....

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....ed Special Government Pleader (Taxes) submitted that the rate of tax as available under the Act relating to rubber products alone has to be adopted. 6. We do not find any justification to accept the said plea. It is seen from the I Schedule that there is a specific entry both before and after the amendment to the Schedule as regards rubber belting and automobiles, tractors and two wheelers with parts and accessories. As far as for the period upto 11.3.1993 is concerned, Entry 3 of the First Schedule makes a specific reference to parts and accessories of motor vehicles including motor cars, motor vans, lorries, jeeps, two wheelers etc. On and from 12.3.93, the motor cars, vans, lorries, jeeps with parts and accessories were brought under ....

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....ccessories, Entry 50, on the other hand, is a general entry dealing with rubber products, excluding pharmaceutical and surgical products. The enumeration shows the products enumerated there are in the nature of compound rubber, unvulcanised, in primary forms or in plates, sheets or strips, other forms of rubber, rubber thread and cord. Sub clause (vi) deals with conveyor, transmission or elevator belts or belting of rubber whether combined with any textile material or otherwise. Going by the enumeration therein particularly as regards belting referable to conveyor and transmission belting, it is clear that goods referred under Entry 50 has no relevance to the belts used in automobile, two wheelers or tractors. The enumeration in Entry 50 th....