2026-VIL-385-MP
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VAT High Court Cases

M.P. Sthaniya Kshetra Me Mal Ke Pravesh Per Kar Adhiniyam, 1976 – Part of 'plant and machinery' or 'incidental goods' - Levy of Entry Tax on Grinding Media Balls and Rubber Liners brought into the local area, Integral parts of Ball Mill machinery - Whether Grinding Media Balls and Rubber Liners, which are fitted inside the Ball Mill as its constituent parts to enable the grinding of copper ore, are 'incidental goods' within the meaning of Section 2(hh) of the M.P. General Sales Tax Act, 1958, or whether they form part of 'plant and machinery' and are thus outside the scope of levy of entry tax as incidental goods under the Entry Tax Act – HELD – The Grinding Media Balls and Rubber Liners, which are fitted inside the Ball Mill as its constituent parts to enable the grinding of copper ore, are not 'incidental goods' within the meaning of Section 2(hh) of the MPGST Act, 1958 but rather form part of 'plant and machinery' and are thus outside the scope of levy of entry tax as incidental goods under the Entry Tax Act. The Ball Mill cannot operate and perform its function of grinding copper ore unless the Grinding Media Balls and Rubber Liners are fitted inside it, and these components are the very means by which the Ball Mill grinds the ore - The Court relied on the established principle that parts or members of a machine which, when assembled, form a complete machine, may also be styled 'machinery', and that components essential to the functioning of a machine partake the character of the machine itself. The mere fact that these components undergo wear and tear and must be replaced periodically does not alter their character as integral parts of the Ball Mill machine. The components which are integral to the functioning of a plant or processing unit, and without which the machinery would be incomplete or inoperative, must be treated as 'plant and machinery' and not as 'incidental goods' - The consolidated revision order and the underlying assessment orders levying entry tax on Grinding Media Balls and Rubber Liners are quashed and set aside. The respondents are directed to give effect to this order and refund any amounts deposited pursuant to the impugned demand – The writ petition is allowed
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