(2011) 40 VST 141 (MP) Fairdeal Corporation v. Commissioner of Commercial Tax, Madhya Pradesh and Others

Facts:
The dealer manufactured and supplied fan covers and terminal boxes according to specification for use as accessories in monoblock pumps. The question before the High Court was whether the fan covers and terminal boxes, manufactured and supplied by the dealer, to be used for manufacture of monoblock pump sets used for irrigation purposes, were covered by Entry 7 of Part IV of Schedule II to the Madhya Pradesh Vanijya Kar Adhiniyam, 1994 as parts and accessories of the electric motor, or under Entry 89 of Schedule I to the Act as accessories of pumping sets.

Held:
The electric motors on which these two items were fixed are an integral part of the monoblock pump and not separable from the pump. The items in question could be used as accessories to the electric motor, but when the electric motor itself was an integral part and inseparable from the monoblock pump, the items in question would not be accessories of the electric motor but accessories of the monoblock pump.

In the monoblock pump the electric motor has no separate existence as independent item, therefore, the items in question could not be said to be an accessories to electric motor when used in monoblock pump.

When these items are used as accessories to the monoblock pump sets of less than 10 horse-power capacity they are covered by Entry 89 of Schedule I and not by Entry 7 of Part IV of Schedule II which is a general entry in respect of electric machine, its part and accessories. However, if the same items were sold by the petitioner for use as accessories or otherwise to some other main item, then they would be taxed according to the relevant entry covering such items and accessories.