1977 TAX. L. R. 2369 ::1977 Ker L T 728 ::40 S T C 437 ::ILR (1977) 2 Ker 533

Kerala High Court

Hon'ble Judge(s): V. Balakrishna Eradi, T. Kochu Thommen , JJ

Kerala General Sales Tax Act (15 of 1963) , S.5(3), Sch.1, Entry26— Concessional rate under S. 5 (3) - 'Electrical goods' - Copper wire is not a component part of electrical transformers which are admittedly electrical goods within Entry 26 - Hence concessional rate under S. 5 (3) would not be available to seller of copper wires. An article can be regarded as a component part of the principal object only if the latter is incomplete without the former, and the former is capable of identification either visually or through chemical or other test as a distinguishable part of the finished product. (Case law discussed). It cannot be said that copper wire, although a necessary material or constituent used in the manufacture of electrical transformers, has an identity of its own to be regarded as a component part of electrical goods. Therefore, though copper wire is used as one of the materials in the production of certain electrical goods it cannot be termed as a component part of such item.(Para 6)