wire ropes used in the Mobile Cranes are a part of the Mobile Cranes and thus fall in Entry 155 of Schedule IV of the VAT Act. = It is for this reason, we are of the considered opinion that the Mobile Crane Wire Rope is an essential part of the Mobile Crane and, therefore, falls in Entry 155 of Schedule IV of the VAT Act. It is, therefore, taxable at the rates prescribed for the goods specified in Entry 155.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL  APPEAL No.3198 OF 2019
(Arising out of S.L.P.(C) No.11937 of 2017)
CTO, Anti Evasion, Circle III,
Rajasthan, Jaipur ….Appellant(s)
VERSUS
M/s Prasoon Enterprises, Jaipur            ….Respondent(s)
WITH
CIVIL  APPEAL Nos.3199­3200 OF 2019
(Arising out of S.L.P.(C) Nos.4837­4838 of 2017)
CIVIL  APPEAL Nos.3201­3202 OF 2019
(Arising out of S.L.P.(C) Nos.4839­4840 of 2017)
AND
CIVIL  APPEAL No.3203 OF 2019
(Arising out of S.L.P.(C) No.5981 of 2017)
               
J U D G M E N T
Abhay Manohar Sapre, J.
In C.A. @ S.L.P.(c) No.11937/2017
1. Leave granted.
1 1
2. This appeal is filed against the final judgment
and   order   dated   05.01.2017  passed   by   the   High
Court of judicature for Rajasthan at Jaipur Bench,
Jaipur in S.B. Sales Tax Revision Petition No.114 of
2016 whereby the High Court dismissed the revision
petition filed by the appellant herein.
3. The appeal involves a short point as would be
clear from the undisputed facts stated infra.
4. The   appellant   herein­State   of   Rajasthan
(Commercial   Tax   Department)   is   the   revision
petitioner   whereas   the   respondent   herein   is   the
respondent of the revision petition before the High
Court out of which this appeal arises.
5. The respondent is engaged in the business of
trading of spare parts of mining machinery, steel
wire ropes, standard wires, wire rods etc.   These
goods are subjected to payment of Value Added Tax
(VAT) under the Rajasthan Value Added Tax Act,
2 2
2003   (hereinafter   referred   to   as   “VAT   Act”).   The
respondent is a registered dealer under the VAT Act.
6. The Commercial Tax Officer (AE) [hereinafter
referred   to  as   “CTO”]   conducted   a   survey  in   the
respondent’s business premises on 16.03.2009 and
it   was   noticed   therein   that   the   respondent   was
charging VAT at the rate of 4% on "Mobile Crane
Wire Ropes”.
7. It is with this background fact, the question
arose before the taxing authorities under the VAT
Act as to which is the proper Entry under the VAT
Act for charging tax on "Mobile Crane Wire Ropes".
8. The aforementioned question arose before the
CTO   in   the   assessment   proceedings,   which   were
initiated against the respondent in their business
premises as a result of the survey conducted by the
CTO   and   also   arose   before   the   Deputy
3 3
Commissioner, Commercial Tax Department to seek
his advance ruling on the aforementioned question.
9. The CTO and the Deputy Commissioner were
of the view that the rate of tax chargeable to the
goods  in question  is 12.5%  as prescribed in  the
Residuary Entry in Schedule V under the Act and
not 4% as prescribed in Entry 155 of Schedule IV of
the VAT Act.
10. In   other   words,   both   the   taxing   authorities
were of the view that the proper Entry for payment
of  tax  on   these  goods is  the  Residuary  Entry of
Schedule   V,   which   prescribes   the   rate   of   tax   as
12.5%.
11. The CTO accordingly initiated the assessment
proceedings   against   the   respondent   for   the
Assessment Year 2007­2008.  By assessment order
dated 16.03.2009, it was held that the respondent
was liable to pay VAT at the rate of 12.5% under the
4 4
Residuary   Entry   of   Schedule   V   of   the   VAT   Act.
Since the respondent had deposited the tax at the
rate of 4% treating the goods in question as falling
in Entry 155 of Schedule IV, the notice was issued
to the respondent to pay the difference amount of
VAT along with penalty and the  interest payable
under the VAT Act.
12. The respondent felt aggrieved and filed appeal
before the Deputy Commissioner (Appeals). By order
dated 02.12.2010, the Appellate Authority allowed
the appeal and set aside the order of the CTO (AE).
The   Appellate   Authority   held   that   the   ropes   in
question were essentially used in Mobile Cranes as
part of the Mobile Cranes. It was held that a Mobile
Crane   is   not   complete   and   nor   it   can   effectively
function   without   the   use   of   the   rope.     It   was,
therefore, held that the rope is a part of a Mobile
Crane and chargeable to VAT in accordance with
5 5
rates prescribed in the Entry 155 of Schedule IV of
the Act.
13. The State (CTO) felt aggrieved and filed appeal
before the Rajasthan Tax Board under Section 83 of
the VAT Act.  By order dated 06.01.2016, the Board
dismissed the appeal and affirmed the order of the
Deputy   Commissioner.     The   State   (CTO)   felt
aggrieved   and   filed   revision   petition   in   the   High
Court of Rajasthan Bench at Jaipur.
14. By impugned order, the High Court dismissed
the   revision   and   upheld   the   order   of   the   Board,
which has given rise to filing of this appeal by way
of special leave by the State (CTO) in this Court.
15. So,   the   short   question,   which   arises   for
consideration in this appeal, is whether the High
Court   was   justified   in   dismissing   the   appellant's
(State/CTO)   revision   and   thereby   justified   in
upholding the  view taken  by  the Board that  the
6 6
"Mobile Crane Wire Ropes" are chargeable to tax @
4% under Entry 155 of Schedule IV of the VAT Act.
16. Heard Dr. Manish Singhvi, learned AAG for the
appellant and Ms. Jyoti Mendiratta, learned counsel
for the respondent.
17. Learned counsel for the appellant (CTO) while
assailing   the   legality   and   correctness   of   the
impugned order reiterated the same submissions,
which were urged before the High Court.
18. In   substance,   his   submission   was   that   the
goods in question are chargeable to tax at the rate
of   12.5%,   which   is   the   rate   prescribed   in   the
Residuary Entry of Schedule V of VAT Act because,
according to the learned counsel, there is no specific
Entry under which the goods in question fall for
being taxed at a specified rate. 
19. In other words, the submission was that since
the goods in question are not specified in any of the
7 7
Entries in Schedule IV and Schedule V of the VAT
Act and nor they are the parts of the Mobile Cranes,
the only Entry under which they can be taxed is the
Residuary Entry of Schedule V of the VAT Act.
20. In   reply,   the   learned   counsel   for   the
respondent (dealer) supported the impugned order
and   contended   that   it   does   not   call   for   any
interference.
21. Having   heard   the   learned   counsel   for   the
parties and on perusal of the record of the case
including the written submissions, we find no merit
in this appeal.
22. As taken note of  supra, the question, which
arises for consideration in this case, is whether the
"Mobile Cranes Wire Ropes" are chargeable to tax at
the rate of 4% or 12.5% under the VAT Act.
23. In other words, the question arises is whether
the goods "Mobile Cranes Wire Ropes" fall under
8 8
Entry 155 of Schedule IV or under the Residuary
Entry of Schedule V of the  VAT Act.
24. At the relevant time, there were two relevant
Entries which read as under:
SCHEDULE IV
[See section 4]
Goods Taxable at 4%
S.No. Description of Goods Rate of
Tax %
Conditions, if any
1. 2. 3. 4.
155. Hydraulic excavators
(earth moving and mining
machinery), mobile
cranes and hydraulic
dumpers (including parts
thereof).
Bracketed portion was inserted by
Notification
No.F.12(63)FD/Tax/2005­51 dated
08.05.2006 vide S.O. No.99 dated
09.05.2006
4
SCHEDULE V
[See section 4]
Goods Taxable at 12.5%
S.No Description of Goods Rate of Tax %Conditions, if any
1 2 3 4
1. Goods not covered in any other
Schedule under the Act or under
any notification issued under
section 4 of the Act.
12.5
25. Mere reading of Entry 155 quoted above would
go   to   show   that   the   goods   called   Hydraulic
9 9
excavators (earth moving and mining machinery),
Mobile Cranes and Hydraulic Dumpers (including
parts thereof) are chargeable to tax at the rate of
4%.
26. It may be mentioned here that the expression
“including parts thereof” was inserted in the Entry
155   by   an   amendment   w.e.f.   09.05.2006.   It,
therefore,   indicates   that   the   parts   of   the   goods
specified in the Entry were not chargeable to tax at
the   rate   of   4%   prior   to   09.05.2006   but   became
chargeable   at   the   rate   of   4%   only   on   and   after
09.05.2006.
27. This Court has laid down the test as to how
the Court should decide the question as to whether
a particular item is a part of other.  The test is “a
thing   is   a   part   of   the   other   if   the   other   is
incomplete without it”.   In other words, “a thing
is   a   part   of   the   other,   if   the   other   cannot
10 10
function   without   it”.   [See   M/s   Annapurna
Carbon   Industries  vs.  State   of   Andhra   Pradesh
[(1976) 2 SCC 273 and  Commissioner  of  Central
Excise,   Delhi  vs.  Insulation   Electrical   Private
Limited (2008) 12 SCC 45)]
28. When we apply this principle to the facts of the
case at hand then we find no difficulty in holding
that the wire ropes used in the Mobile Cranes are a
part of the Mobile Cranes and thus fall in Entry 155
of  Schedule IV of the VAT Act. 
29. A fortiori, it is taxable at the rate of 4%. The
reasons are not far to seek.
30. The respondent has filed (Annexure R­1), the
complete literature with a view to show as to how
the Mobile cranes are designed, structured, built
and operated in the field when it put to its ultimate
use   by   the   consumer.   They   have   also   filed   the
11 11
details of the specification issued by the Bureau of
Indian Standards specifying therein the strength of
each   wire   rod/rope,   which   is   used   in   the
manufacture of different kind of Cranes.   
31. Mere perusal of the literature would go to show
that the Mobile Cranes are not complete without the
wire   ropes.   In   other   words,   in   order   to   use   the
Mobile Cranes and make them operational, the use
of wire ropes is essential.  If wire ropes are not fitted
in the Mobile Cranes, they will not function much
less effectively.
32. It is for this reason, we are of the considered
opinion   that   the   Mobile   Crane   Wire   Rope   is   an
essential part of the Mobile Crane and, therefore,
falls in Entry 155 of Schedule IV of the VAT Act.  It
is, therefore, taxable at the rates prescribed for the
goods specified in Entry 155.
12 12
33. We,   however,   make   it   clear   that   we   have
examined only the question of taxability of the “wire
ropes” in the context of its use in Mobile Cranes as
would be clear from the question posed by the High
Court in Para one of the impugned order.
34. In view of the foregoing discussion, the appeal
is found to be devoid of any merit and it thus fails
and is accordingly dismissed.
In C.A.Nos. @ S.L.P.(c) Nos.4837­4838/2017,
4839­4840/2017 and 5981/2017
1. Leave granted.
2. These   appeals   are   directed   against   the
common final judgment and order dated 07.10.2016
passed   by   the   High   Court   of   Judicature   for
Rajasthan, Jaipur Bench at Jaipur in S.B. Sales Tax
Revision Petition Nos.106, 101, 99, 100/2013 and
449/2011 whereby the High Court dismissed the
revision petitions filed by the appellant herein.
13 13
3. In view of the order passed above in C.A. @
S.L.P.(C)   No.11937/2017,   these   appeals   are
dismissed.     
                                     .………...................................J.
                                   [ABHAY MANOHAR SAPRE]   
                               
     …...……..................................J.
             [DINESH MAHESHWARI]
New Delhi;
March 26, 2019
14 14