State of Gujarat vs Jayprakash and Company

Mukesh R. Shah, J.—The present reference, at the instance of the applicant-State of Gujarat, has been made by the learned Gujarat Sales Tax Tribunal, Ahmedabad for the opinion of this court under section 69 of the Act on the following question :

"Whether, on the facts and in the circumstances of the case, the Gujarat Sales Tax Tribunal was right in law in holding that sales of switch boards would be taxable as falling in entry 113 of Schedule DA of the Gujarat Sales Tax Act, 1969 and not under entry 41 of Schedule IIA to the Act?

We have heard Mr. Jaimin Gandhi learned Additional Government Pleader for the applicant-State and Ms Gargi Vyas, learned advocate for respondent-dealer.

The question of law framed and submitted to this court for its opinion under section 69 of the Act, is a very narrow compass. The short question which is posed for the consideration of this court is whether the wooden boards of different sizes and types, which are, in fact, used for manufacturing of switch board, can be said to be a spare parts and accessories under entry 113 of Schedule IIA of the Act or so as to consider on behalf of the dealer or under entry No. 41 of Schedule IIA, as contended on behalf of the Revenue.

We have heard learned advocates appearing on behalf of the respective parties at length and considered the respective entry, i.e., entry 113 as well as entry 41. Entry 113 is as under :

"Transformers, switch gears, switch boards and its spare parts and accessories."

It is not in dispute that, as such, the wooden boards of different size and types, are used for the purpose of manufacturing of switch boards. It is not the case on behalf of the Revenue that the said wooden boards are different size and types are sold independently. Under the circumstances, when the said wooden boards of different size and types are used for manufacturing of switch board, it can be said to be a spare parts and it will fall within the definition of spare parts. Under the circumstances, the same would fall under entry 113 of Part A of Schedule II, which is reproduced hereinabove. Under the circumstances and in the facts and circumstances of the case, the learned Tribunal has not committed any error in law in holding that the sale of switch board would be taxable as falling in entry 113 of Schedule IIA of the Gujarat Sales Tax Act, 1969 and not under entry 41. Under the circumstances, the question referred to this court is held in favour of the dealer and against the Revenue. Consequently, the present reference deserves to be dismissed and is accordingly dismissed.