In Brief
The State's appeal challenged the classification of mobile crane wire ropes for VAT purposes. The respondent dealer charged 4% VAT (Entry 155, Schedule IV) while the tax authority demanded 12.5% (Residuary Entry, Schedule V). The Supreme Court held that wire ropes are essential parts of mobile cranes without which cranes cannot function. Applying the test that 'a thing is a part of another if the latter is incomplete without it,' the Court confirmed wire ropes fall within Entry 155 and are taxable at 4%. The appeal was dismissed.
The lawyer headnote and full judgment text are available to registered users.