As per Supreme Court on Words and Phrases COMPONENT PART

1 DEFINITION OF GOODS AND COMPONENTS As per Supreme Court on Words and Phrases COMPONENT PART In the absence of any definition of the term Component Parts, it is permissible to refer to the dictionary meaning of the word Component. According to the Webster Comprehensive Dictionary. International Edition the word Component interalia means a constituent part (Para 3). Star Paper Mills Ltd. Vs. Collector of Central Excise (1989) 4 SCC 724, 726: AIR 1989 SC 2066: (1989) 2 CLR 503;(1989) 24 ECC 369. GOODS Goods have been understood to be known as identifiable articles known in the market as goods and marketed or marketable in the market as such. Collector of Central Excise V. Eastend Paper Industries, (1989) 4 SCC 244: 1989 SCC (Tax) 602: (1982) 24 ECC 375 Goods Constitution of India, Art 366(12) By Art, 366(12) of the Constitution the expression goods is defined as inclusive of all materials, commodities and articles. That is, however an inclusive definition and does not throw much light on the meaning of the expression goods. State of Maharashtra vs. Champalal Kishanlal Mohta (1970) 1 SCC 611 : AIR 1971 SC 908: (1971) 27 STC 116. Goods - Sale of Goods ACT. 1930. S 2 (7) Section 2(7) of the Sale of Goods Act defines goods as meaning every kind of movable property other than actionable claims and money ; and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to

2 be served before sale or under the contract of sale. Ram Narain Matho V. State of M.P. (1970) 1 SCC 25 Goods Sale of Goods Act, 1930, S.2 (7) The expression goods included at all relevant times standing timber agreed to be severed before sale or under the contract of sale. State of Maharashtra v. Champalal Kishan Mohta (1970) 1 SCC 611. Goods - Sale of Goods Act 1930 S.2 (7) Bamboos and timber are goods. State of Orissa v. Titaghur Paper Mills Co. Ltd, 1985 SCC (tax) 538: AIR 1985 SC 1293: 1985 Supp. SCC 280, 315, 316: (1985) 60 STC 213. As Per Aiyar s Judicial Dictionary 9 th Edition Component Parts: A part which goes in the composition of an article after it becomes part of such article. It may retain or even lose its identity. (Vithal Chhagan and Sons V. State of Gujrat (1966) 17 STC 96 (Guj) Goods. The word goods means and includes every kind of movable property. In S. 76, Indian Contract Act, Goods means anything which is the subject or trade or manufacture. (S.2 (1)(g). Trade and Merchandise marks Act, 1958 (46 of 1958). - is defined in S.2 (7) of Sale of Goods Act (See also G.R. Kulkarni v. State AIR 1957 MP 45)..the stationery sold by the assessee to his customers is goods and that when the assessee brings into existence printed stationery to the order of individual customer, he produces a commercial commodity, which is capable of being sold and supplied (Cf M.B. Sales Tax Act (39 of 1930) Ss. 2(b) and 2(g) :Sardar P. Work V. Sales Tax Commissioner, AIR 1958 MP 30).

3.the word goods is S. 183 (See Customs Act 1878) would include a vessel when it is the question of the vessel being confiscated (E.O. Line Inc. V. Jasjit Singh, AIR 1959 Cal 237).as the Act does defines goods, the Legislature must be taken to have used that word in its ordinary dictionary meaning. The dictionary meaning is that to become goods it must be something which can ordinarily come to the market to be bought and sold and is known to the market (Cf. General Excise and Salt Act, 1944, Ss 3 and 2(f) : South Bihar Sugar Mills Ltd, V. Union of India, AIR 1968 SC 9.2).and Chattels include all kinds of movable property as well as right of action, bills, debts bank notes, bonds etc. Electrical Energy if (See Electric Energy). and Manufacture. The word Manufacturer used as a verb is generally to mean as bringing into existence a new substance and does not mean merely to produce some change in a substance however minor in consequence the change may be....that to become goods as article must be something which can ordinarily come to the market to be bought and sold But, as the duty is on the manufacture of goods, that is, on the bringing into existence a new substance known to the market, the raw oil or the refind oil must be come substance known to the market before it can be subjected to duty.(cf. Central Excise and Salt Act (1 of 1944) as amended by Act 38 of 1960), Sch. I Items 12 13; Union of India v. Delhi Cloth and General Mills Co. Ltd, AIR 1963 SC 791). As per Words and Phrases Under Sales Tax Laws Component Part

4 An article has been considered to be a component part of another when the article forms a constituents part of the latter and the latter is imcomplete without the former. A body mounted on the chassis of a motor vehicle has been treated as a component part of a motor vehicle, as a vehicle is incomplete without the body. Diesel engines which can ordinarily be used for various purposes, but which cannot, without the assistance of conversion kits, be used in motor vehicles, have not been regarded at component part of motor vehicles. A typewriter ribbon has not been treated as a component part of a typewriter as the latter is complete without the former. CST v. Pritam Singh (1968) 22 S.T. 414: State of Mysore v. Kores (India) Ltd (1970) 26 STC 87; Agarwala Brothers vs. CST(1969) 23 STC 306; Kores (India) Limited, Kanpur vs State of U.P. (1970) 26 STC 126; Deputy Commissioner of Agricultural Income Tax and Sales Tax Ernakulam Vs. Union Carbide India Ltd 2(1976) 38 STC 198. A component part has to be an identifiable object. It is not sufficient if the article has been sued as a material or a constituent in the manufacture of transformers, motor vehicles, electric fans and the like or wood is used in the construction of boats etc. These are raw materials used in the construction of such goods. They are not component parts in the sense that steering-wheels are to a vehicle or fan blades are to a fan. Steering-wheels and fan blades are identifiable as component parts and are so understood in common parlance. In order to be regarded as a component part the article so used must have a commercial identity as a distinguishable part of the whole. It is not necessary that the article should be capable of being visually identified in the finished products, so long as it can be identified by chemical or other test.

5 State of Madras V. R.M. Krishnaswami, Noida (1970) 26 STC 42 (S.C) ; Paul Lazar V. State of Kerala (1977) 40 STC 437 at 439 (Ker) In Commissioner of Sales Tax V. Pritam Singh (1976) 22 STC 414, it was held that an article is a component of another when it forms a constituent part of that other and is essential for completing it. Hat presumes necessarily that the article as such must in its condit8ion and functioning be capable of use in that other. Agarwala Brothers v. CST (1969) 23 STC 306 at 307 Typewriter Ribbon being a part of a machine is that which contributes to making the machine a complete article. It is a part of the whole. It is a component which together with other component results in a complete article. Even in absence of a ribbon, a typewriter is a complete machine. It is all that a typewriter should, be and the addition of ribbon does not make a number of purposes of typing character on a writing surface and equivalent to ink as in a pen. Moreover, a ribbon is not necessary for all the purposes for which typewriter is employed as in cutting stencils. Typewriter ribbon cannot be a part of typewriter. Kores (India) Ltd, v. State of U.P.(1970) 26 STC 126 (D.B) (All): 1970 U.P.T.C. 760 Fuse switch boxed are component parts of electrical goods. State of Tamil Nadu V. Binny s Engineering Works (1975) 35 S.T.C. 260(Mad) GOODS:-

6 Under Article 366(12) of the Constitution of India this expression has been defined to include all materials commodities, and articles. That is an inclusive definition. The Central Excise and Salt Act, 1944, however, concerns itself with goods manufactured or produced. To become goods an article must be something, which can ordinarily come to the market to be bought and sold. It is not necessary that before an article can be treated as goods it should have been actually brought to the market for being bought or sold, but must be one which is capable of being brought to the market for being bought or sold. It is not necessary that before an article can be treated as goods it should have been actually brought to the market for being bought or sold, but must be one which is capable of being brought to the market for being bought or sold. Ashok Griha Udyog Kendra Private Ltd. v. Collector, Central Excise and Customs, Kanpur, 1982 UPTC 440 (ALL) Goods- See Commentary on U.P. Sales Tax Act, 1948 by Bharatjee Agarwala. Goods intended for use in the manufacturing or processing of goods for sale. The expression goods intended for use in the manufacturing or processing of goods for sale in Section 8(3) of the Central Sales Tax Act, 1956 include such vehicles as were intended to be used for removal of the processed goods from the factory to the place of storage. The mere fact that there is a statutory obligation imposed upon the owner of the factory or the mine to maintain hospital facilities would not, supply a connection between the goods and the manufacturing or processing of goods or the mining operations so as to make them goods intended for use in those operations. The expression intended to be used cannot be equated with likely to facilitate the

7 GOODS: conduct of the business of manufacturing or of processing goods or of mining. Travancore Tea Estates Co. Ltd, v. State of Kerala, 1977 UPTC 120 (S.C) (1977) 39 STC 1 at 5 (S.C) As per Webster s Encyclopedic Unabridged Dictionary of the English Language :- COMPOENNT : 1. being or serving as an element (in something larger); composing, constituent ; the component parts of a high fidelity phonograph. 2. Constituent high-fi component. 3. Physics the projection of a vector quantity as force, velocity or the like, along an axis. 4. Physical; Chem. one of the set of minimum number of chemical constituents by which every phase of given system can be described. 5. Math; a connected subset of a set, not contained in any other connected subset of the set. 6. Co-ordinate of a vector. 7. To put together. a. Possession esp movable effect or personal chattels. b. Articles of trade, wares, merchandise c. U.S. Informal what has been promised or is expected to deliver the goods. d. U.S. Informal the genuine articles e. U.S. Informal evidence of guilt as stolen articles to catch someone with the goods.

8 f. U.S. Cloth or textile material : Will these wash without shrinking g. Chiefly Brit merchandise sent by land, rather than by water or air. 44. come to no goods, to end in failure or as a failure: Her jealous relative said that she would come to no good. 45. for goods, finally and permanently forever: to leave the country for good Also for good and all