The central legal point established in the judgment is the interpretation of the relevant entries in the First Schedule of the Tamil Nadu General Sales Tax Act, 1959, and the application of established legal principles to determine the tax assessment on motor bus accessories, specifically the classification of automobile glasses.

P.P.S. JANARTHANA RAJA, J.

The assessee is on appeal as against the order of the Joint Commissioner, Chennai, in Ref.No.M2/MM2/18440/98 (SMR No.II/792/98) dated 27.03.2002.

2. The petitioner/assessee is a registered dealer under the provisions of the Tamil Nadu General Sales Tax Act, 1959 and also a dealer in Motor bus Accessories. The relevant assessment year is 1994-95 and the assessee had purchased the motor bus accessories such as glass from the local registered and also from the dealers in other State and resold the goods inside the State of Tamil Nadu at 8% and remitted the same to the assessing officer along with the returns. Later the assessing officer rectified the order under Section 55 of the Tamil Nadu General Sales Tax Act holding that the motor accessories are subjected to tax at 12% and also levied penalty under Section 12(3)(b) of the Act. Aggrieved by that order, the assessee filed an appeal before the Appellate Assistant Commissioner, and disputed the same. The Appellate Assistant Commissioner allowed the appeal holding that the glasses purchased by the assessee squarely falls under cover of auto-parts and hence, the accessories used for motor bus dealers are taxable only at 8% and not at 12%. To the great surprise of the appellant, the Special Commissioner issued notice under Section 34 of the Act and proposed to restore the order of the Assessing Officer passed under Section 55 of the Act. The Joint Commissioner held that the Assessing Officer has correctly assessed the goods at 12% and restored the order of the assessing officer and set aside the order of the Appellate Assistant Commissioner. Aggrieved by the said order, the assessee filed present appeal.

3. Learned counsel appearing for the appellant/assessee submitted that the order passed by the Joint Commissioner is not in accordance with law and also wrong in setting aside the order of the Appellate Assistant Commissioner and restoring the order of the assessing officer. He further submitted that the Joint Commissioner is wrong in holding that the automobile glasses falls under Item-11(I)/Part E of First schedule to the Tamil Nadu General Sales Tax Act, 1959 and the Joint Commissioner ought to have considered that the goods sold were only used as automobile spare parts and therefore, the same should be assessed only at 8% and they had collected tax only at 8% from the customer and sold the same to the bus body builders and therefore, it will fall under entry 43(ii)/Part D of the First Schedule and hence, it will not come under Entry 11 (I)/Part E of First schedule and the order passed by the Joint Commissioner has to be set aside.

4. Learned Government Advocate appearing for the Revenue submitted that both the assessing officer and also the Joint Commissioner had correctly held that the automobile glasses were only fall under Item 11(I)/Part E of first schedule and the same will not come under Entry 43(ii)/Part D of the First Schedule and hence, the order passed by the Joint Commissioner is in accordance with law and the same has to be confirmed.

5. Heard the learned counsel appearing for the petitioner/assessee and the learned Government Advocate appearing for the Revenue and perused the documents on record. The assessing officer has originally completed the assessment levying the tax at 8% under Entry 43(ii)/Part D of the First Schedule on the ground that goods dealt by the assessee are auto parts and accessories. Later he was of the view that the goods dealt with by the dealer will fall under Item E 11(i) of First Schedule and rectified the order under Section 55 of the Act and therefore, levied tax at 12%.

6. The relevant entries are as follows:

"43(i) Motor cars, Motor taxi-cabs, Motor omni buses, Motor vans, jeeps and motor lorries, chassis of motor vehicles built on chassis of motor vehicles belonging to others (on the turnover relating to bodies) all varieties of trailers by whatever name known (other than trailers of tractors).

(ii) Pa