Balasubrahmanyan, J. - (1.) The question in the this case is whether metallic galvanised steel flexible pipes fall under entry 3 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959. Entry 3 is as follows : "Motor vehicles including motor cars, motor taxi-cabs, motor cycles and cycle combinations, motor scooters, motorettes, motor omnibuses, motor vans and motor lorries, chassis of motor vehicles, bodies built on chassis of motor vehicles belonging to others (on the turnover relating to bodies), component parts of motor vehicles, all varieties of trailers, by whatever name known, tyres (including pneumatic tyres) and tubes ordinarily used for motor vehicles and trailers (whether or not such tyres and tubes are also used for other vehicles), and articles (excluding batteries) adapted for use generally as parts and accessories of motor vehicles and trailers."
(2.) The pertinent point on which attention has to be paid is to see whether the articles dealt in by the assessee in this case can be regarded as "articles adapted for use generally as parts and accessories of motor vehicles and trailers". The article in question, described as metallic galvanised steel flexible pipe, is a manufactured article of some length. When cut to size, the pipe can be used as a component part for trucks as vacuum pipe or as hydraulic air-brake. There was evidence on records to show that the assessee had sold the metallic galvanised steel flexible pipes to purchasers who were themselves dealers is automobile parts and components. The Board took the view that since the assessee had sold the galvanised steel flexible pipes to automobile dealers for being sold by them as automobile components after being cut to size, the article in question must be regarded as falling within the ambit of entry 3 of the First Schedule to the Act.
(3.) The contention of the assessee, on the other hand, was based on a demonstration from its record of sales which showed that several transactions of sale of the metallic galvanised steel flexible pipe had been effected to purchasers who were not dealers in automobile parts or components. It was represented by reference to the trade catalogue that these pipes could be used not only for making automobile parts, such as vacuum pipes and hydraulic air-brakes for trucks, but also as pipes for conveying black hydrocarbon, for distribution of air, oils, blast furnace on tankers, non-corrosive liquids and also as vibration absorbers, not to speak of other uses. The assessee, accordingly, contended that the articles dealt in by it cannot be branded as "articles adapted for use generally as parts and accessories of motor vehicles and trailers" within the meaning of entry 3 of the First Schedule. The Board, however, rejected this contention. The Board happened to deal with this question because the Appellate Assistant Commissioner dealing with the assessee's income for 1972-73 had taken the view that the galvanised steel flexible pipes being sold by the assessee must be taxed at the multi-point rate then prevailing, namely, 3 1/2 per cent, and cannot be brought within the purview of entry 3 of the First Schedule and taxed at 13 per cent single point. Disagreeing with this decision of the Appellate Assistant Commissioner, the Board took suo motu revision proceedings. It was in these proceedings that the Board recorded their determination that the article dealt in by the assessee did fall within entry 3 of the First Schedule and was assessable to single point tax at the rate of 13 per cent.;