Interpretation of synthetic adhesive entry kept vulcanizing solution under the residuary tax rate, not the higher specific rate.

Vulcanizing solution used in tyre retreading was treated as an adhesive in substance because it bonds rubber layers, but the higher tax entry for synthetic adhesives was read narrowly. Applying ejusdem generis and noscitur a sociis, the entry was confined to synthetic adhesives of the class used in the paints industry, and the commodity was not shown to fall within that class. In the absence of any other specific entry, the product remained taxable under the general residuary rate rather than the higher rate for synthetic adhesives.

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Issues: Whether vulcanizing solution used in tyre retreading is taxable at 16% as a synthetic adhesive under Entry No. 91 of Notification S.O. No. 399 dated 27-03-1995, or at the general rate of 10% under the residuary Entry No. 100.

Analysis: Vulcanizing solution was found to be an adhesive in substance because it is used for bonding rubber layers in tyre retreading, but the scope of Entry No. 91 had to be read in its context. Applying ejusdem generis and noscitur a sociis, the words used in the entry drew colour from the surrounding items and were confined to synthetic adhesives of the class used in the paints industry. The commodity in question was not shown to fall within that class, and no other specific entry warranted application of the higher rate.

Conclusion: Vulcanizing solution was not taxable at 16% under Entry No. 91 and was rightly taxed at 10% under the general residuary entry.

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