TaxTMI 
TaxTMI 
2017 (3) TMI 53
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....nd C-II- 135 as tractor parts read with Entry A-35 of the Notification issued under Section 41 of the Bombay Sales Tax Act, 1959?" 2. The question of law referred for our answer is identical in all the three references. The only reason why three references have been preferred is because they relate to three different years, namely, financial years 1996-97; 1997-98 and 1998-99. Since, the facts are identical and so is the question of law, before we analyze the relevant entries in the Schedule to the BST Act, we would like to advert to some brief facts. They are as follows:- (a) It is the case of the applicant that it is engaged in the business of manufacture and sale of oil engines, and parts thereof. Over and above this, it also undertakes manufacture of bearings required by the manufacturer of automobiles and agricultural tractors. These bearings are manufactured as per the drawings and designs supplied by the said manufacturers. (b) Accordingly, the applicant manufactured bearings for motor vehicles and agricultural tractors. According to the applicant these bearings were parts of motor vehicles and parts of tractors, and therefore, classified them under entries C-II-102(2) an....
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....October, 1995. This rate of tax is reduced to 8% for the period from 1st April, 1997 to 31st March, 1999, under Entry 62 of Group-A of the Notification issued under Section 41 of the BST Act. He submitted that bearings are admittedly parts of a motor vehicle. It is required to be manufactured as per the drawings and design supplied by the original Equipment Manufacturer. According to Mr Surte, it is not capable of being used even for any other make of a particular vehicle. 4. Similarly, Mr. Surte also submitted that Entry C-II-35 refers to machinery operated by electricity or any other power and components and accessories thereof, but excluding the machinery specified in any other Entry of this schedule. In this Entry, for the period 1st October, 1995 to 30th April, 1998, tax is attracted at 13%. However, this rate of tax is reduced to 4% in respect of the sales of components, parts and accessories of agricultural tractors for the period 1st October, 1995 to 14th August, 1998 under Entry 35 of Group-A of the Notification issued under Section 41 of the BST Act. He submitted that what is important to note is that Notification Entry A- 35 (which relates to sales of components, part....
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.... Entry with reference to bearings, it was irrelevant whether the sale of those bearings was effected as parts of a motor vehicle or parts of an agricultural tractor, as sought to be contended by the applicant. In support of this proposition, Mr Sonpal placed reliance on a decision of the Supreme Court in the case of the State of Maharashtra Vs. Bradma of India Ltd. (2005) 2 SCC 669 : [2005] 140 STC 17 Relying upon the aforesaid decision, Mr Sonpal submitted that a specific Entry in the schedule to a taxing statute would override a general Entry. Resort has to be had to the residuary or general Entry only when a liberal construction of the specific Entry cannot cover the goods in question. 7. In the facts of the present case, Mr Sonpal submitted that Entry C-II-146 was a specific Entry relating to all types of bearings. This being the case, there was no question of classifying the bearings sold by the applicant to the motor vehicle manufacturers as auto parts, or to tractor manufacturers as tractor parts. There being a specific Entry in the taxing statute for bearings, the same had to be classified under the specific Entry namely, Entry C-II-146. In these circumstances, Mr So....
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....city or any other power and components, parts and accessories thereof but excluding machinery & component, parts and accessories thereof specified in any other entry in this schedule 13 per cent 01.05.1998 to 31.03.1999 Notification Entry A-35 Sales or purchases by a registered dealer of tractors specifically designed for agricultural use and components, parts and accessories thereof covered by entry 135 of Part-II of Schedule C 4 per cent 01.04.1995 to 14.08.1998 Notification Entry A-35 Sales or purchases by a registered dealer of tractors specifically designed for agricultural use and components, parts and accessories thereof (excluding bearing tyres and tubes) covered by entry 135 of Part-II of Schedule C 4 per cent 15.08.1998 to 31.12.1999 11. On a plain reading of these entries, it is clear that they apply to machinery operated by electricity or any other power but excluding machinery, components, parts and accessories specified in any other Entry in this Schedule. Notification Entry A-35 deals with the sale or purchases by a registered dealer of tractors specifically designed for agricultural use and the components, parts and accessories th....
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.... motor vehicles and/or tractors. It is, in these circumstances, that the applicant would contend that these bearings would classify as auto parts or as the case may be, tractor parts for the purpose of levy of sales tax. 15. We are unable to agree with the submissions of the applicant on this point. As far as the bearings are concerned, there is special Entry which deals with bearings of all types including Ball or Roller bearings. This Entry is Schedule Entry C-II-146. There being a specific / special Entry for bearings (Entry C-II-146), we are unable to hold that the bearings sold by the applicant would fall either under Entry C-II-102(2) [as a components, parts of a motor vehicle] or under Entry C-II-135 read with the Notification Entry A-35 [as a components and/or parts of tractors specifically designed for agricultural use]. When there is a specific Entry in the schedule to a Taxing Statute, the same would override a general Entry. In fact, resort should be taken to the general Entry only when a liberal construction of the specific Entry would not cover the goods in question. As far as bearings sold by the applicant are concerned, it can hardly be disputed that Entry C-II-10....
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....eration. Cash registering machines are specifically mentioned. In the absence of any limitation or qualification as to the different kinds of cash registering machines, there is no reason to read in any such qualification and limit the entry to particular kinds of cash registering machines. It is significant that by contrast, data processing machines have expressly excluded computers. Were it not so excluded, computers would have also fallen within Entry 90. In fact computers are separately dealt with in Entry 97(a). But the exclusion of computers from data processing machines would indicate that the items mentioned in Entry 90 are generic covering all species of such items. Given the language of the two entries we fail to understand how the High Court could have come to the conclusion that Entry 97(b) was the specific entry and that Entry 90 was the general entry. Such an interpretation goes against the express language of the two entries." 17. To our mind, the ratio of this judgment would apply to the facts of the present case with full force. Even in the facts of the present case, the Schedule Entry C-II-135 categorically states "but excluding machinery and components, parts an....