JUDGMENT D. M. DHARMADHIKARI, J. - At the instance of the Commissioner of Sales Tax, Madhya Pradesh, the following question of law has been referred to this Court for answer under section 44(1) of the M.P. General Sales Tax Act, 1958 (hereinafter referred to as "the State Act") : "Whether, in the facts and circumstances of the case, the Board of Revenue was justified in holding that axles sold by the non-applicant assessee wee covered by entry 1, Part I of Schedule II appended to the M.P. General Sales Tax Act ? 2. The answer to the above question requires examination of relevant entries on which reliance has been placed by the parties. Entry No. 1 on Part I of Schedule II to the State Act reads as under : Rate of tax 1. Iron and steel as specified in clause (iv) of 4 per cent. section 14 of the Central Sales Tax Act, 1956 (No. 74 of 1956). The above entry No. 1 in the State Act refers to section 14, clause (iv) of the Central Sales Tax Act, 1956 (No. 74 of 1956) (hereinafter referred to as "the Central Act") and the said clause of section 14 has the following entry : (xiv) wheels, tyres, axles and wheel sets. 3. For the assessment period in question admittedly the assessee, namely, M/s. Shankar Motor Stores, Gwalior, sold axles used in automobiles. 4. Learned counsel appearing for the department relied upon entry 1 in Part II of Schedule II of the State Act which reads as under : 1. (i) Motor cars, jeeps and jeep trailers. (ii) Trucks, buses, minibuses and pick-up vans including their chassis and bodies. (iii) Tyres and tubes and spare parts and accessories of the vehicles mentioned in (i) and (ii) above. 5. The learned counsel for the department argues that axles sold are spare parts of motor vehicles and would be covered by sub-entry (iii) of entry 1 of Part II of Schedule II of the State Act as quoted above. 6. Having given out thoughtful consideration to the contents of the above quoted two entries, we have formed an opinion that goods of special importance mentioned in section 14 of the Central Act, which by reference are incorporated in entry 1 of Part I of Schedule II would be deemed to be excluded from entry 1 (iii) of Part II of the said Schedule. The two entries read together show a clear legislative intent that goods of special importance mentioned in section 14 clause (xiv) are to be taxed under entry 1 of Part I at concessional rate of 4 per cent and such goods are not covered by the expression "spare parts" as used in entry 1, clause (iii) of Part II of the said schedule. Any other interpretation as sought to be placed on behalf of the department would make the same goods taxable under both the entries and thus create a confusion. It is a settled law that on fiscal statute an interpretation favourable to the assessee has to be preferred. We are, therefore, of the opinion that the tax authorities were not in error in taking axles under entry 1 of Part I of Schedule II of the State Act. 7. The question referred to, therefore, is answered accordingly in favour of the assessee. Reference answered in the affirmative.