The judgment established the interpretation of 'machinery' and 'accessory' under the Karnataka Sales Tax Act, 1957, and the relevance of subsequent amendments in statutory interpretation.

( 1 ) WHETHER tractor-trailer is a machinery or necessary of a machinery for the purpose of levy of tax under the Karnataka Sales Tax Act, 1957 (hereinafter referred to as "the Act"), is the question of law that arises for consideration in this sales tax appeal presented under section 24 of the Act.

( 2 ) THE appellant is an assessee under the Act. For the assessment period commencing from 31st october, 1970, to 19th October, 1971, the Commercial Tax Officer, II Circle, Hubli, mad an order of assessment against the assessee on 31st October, 1972. Out of his total turnover, a sum of Rs. 1,59,318 representing the sales turnover of tractor-trailers was subjected to tax at 3 per cent. under section 5 (1) of the Act as they were non-scheduled goods. The assessee was satisfied with the order. The Commissioner of Commercial Taxes, however, exercising his suo motu power under section 22a of the Act, issued notice to the assessee on the ground that the order of the Commercial Tax Officer was erroneous and prejudicial to the interests of the revenue. This view was taken by the Commissioner on the ground that tractor-trailer falls under item 20 of the second Schedule to the Act, under which 6 per cent. tax is levied for all machinery and spare parts and accessories thereof. The assessee resisted the notice and contended that tractor-trailer was neither machinery nor a part or accessory of a machinery. The Commissioner, however, overruled the contention of the assessee and passed an order holding that tractor-trailer falls within the definition of the word "machinery" or "accessory" under item 20 of the Second schedule to the Act and, consequently, he brought the sales turnover of tractor-trailers to tax at 6 per cent. for the relevant period. Aggrieved by he said order, the appellant-assessee has presented this appeal under section 24 of the Act.

( 3 ) SRI K. Srinivasan, the learned counsel appearing for the appellant, submitted that tractor-trailer is not "machinery" and cannot also be considered as "accessory of machinery", i. e. , tractor.

( 4 ) SRI Rajendra Babu, the learned counsel appearing for the State, per contra contended that the tractor-trailer is a machinery or, in any event, it is an accessory of a machinery, i. e. , tractor, which is undisputedly a machinery.

( 5 ) IN order to decide the controversy raised by the parties, it is necessary to ascertain the correct import of the word "machinery" as also of the word "accessory". The earliest case in which the word "machinery" was interpreted is the decision of the Privy Council in Corporation of Calcutta v. Chitpore Municipality (A. I. R. 1922 P. C. 27; (1922) 15 M. L. W. 253. ). Section 101 of the bengal Municipal Act, 1884, provided for the computation of property tax on the land on annual letting value basis. According to the second proviso to that section, the value of any machinery on such land was not to be taken into consideration in estimating the value of the land. In order to meet the demand of water during peak hours, the Calcutta Municipality had constructed and overhead steel tank on a land belonging to it, but located within the Chitpore Municipality. Water, whenever available in surplus, was being pumped into the tank and let out during peak hours. In estimating the value of the property, the Chitpore Municipality calculated the value of the overhead tank also. The Calcutta Municipality questioned the said valuation on the ground that overhead tank was a "machinery" and, therefore, its value should have been excluded in view of the second proviso to section 101 of the Act and the matter reached the Privy Council by way of appeal. The Privy Council held that overhead tank was not machinery. The criteria laid down and applied by the Privy Council in that case has been the basic guideline followed in several cases in which such a question arose. They are :

(i) The word "machinery" must mean something more than a collection of ordinary tools. It m