S. SANKARASUBBAN J.

These two T.R.Cs. are filed against the common order in T.A. No. 1056 of 1990 of the Kerala Sales Tax Appellate Tribunal, Additional Bench II, Ernakulam. The assessment years are 1984-85 and 1985-86. The assessee is the revision-petitioner and it is the appellant before the Tribunal.

The dispute raised in this case is whether the cost of spares replaced by the petitioner/appellant during the warranty period forms part of the petitioner's turnover and is liable to tax. The petitioner is the agent for automobile manufacturers like Hindustan Motors Limited. The petitioner gets new motor vehicles from the factory and sells the same in the State of Kerala. The new vehicles are covered by warranty for specified period. During the warranty period if any spare parts have to be replaced, the petitioner, as the agent of the manufacturer, makes replacement free of charge to the owners of the vehicles. The value of such spare parts replaced by the petitioner during the warranty period is reimbursed by the manufacturer by issuing credit notes. The spare parts are purchased in bulk and replacement is made from out of such stock held by the petitioner. After replacem