1969 (11) TMI 82 - HC - VAT and Sales Tax

Classification of Wash-Basins and Urinals for Tax: High Court Rules on 'Sanitary Fittings' vs 'Sanitary Wares'

The High Court determined that wash-basins, commodes, and urinals are classified as 'sanitary fittings' for taxation purposes under Notification No. ... - Issues:Interpretation of the term 'sanitary fittings' under Notification No. ST-905/X dated 31st March, 1956 for the purpose of taxation.Analysis:The case involved an assessment of tax under the U.P. Sales Tax Act on the turnover of sanitary goods by an assessee who contended that wash-basins should be classified as 'sanitary wares' and not 'sanitary fittings.' The Sales Tax Officer applied a specific tax rate to the turnover based on the classification of the goods. The Assistant Commissioner (Judicial) accepted the assessee's contention, but the Judge (Revisions) Sales Tax overturned this decision, holding that all items fell under the category of 'sanitary fittings.' The central question was whether wash-basins, commodes, and urinals should be considered as 'sanitary fittings' under the notification.The High Court analyzed the notification under the U.P. Sales Tax Act, specifically entry No. 36 which referred to 'sanitary fittings.' The Court noted that the notification categorized goods into distinct groups without explicitly excluding any specific items. It cited examples from the notification, such as bicycles, electrical goods, and motor vehicles, to illustrate how entire categories were encompassed within the entries. Based on this scheme, the Court concluded that the term 'sanitary fittings' in the notification was intended to cover the entire category of sanitary goods, including wash-basins, commodes, and urinals.Furthermore, the Court addressed the argument regarding the distinction between 'sanitary fittings' and 'sanitary wares' as mentioned in a publication by the Government of India. It observed that the publication's differentiation was specific to that context and did not align with the classification under the notification in question. The Court emphasized that the notification did not draw a distinction between sanitary fittings and sanitary wares, except for major items like wash-basins, commodes, and urinals, which were the subject of dispute in this case.Ultimately, the High Court ruled that all the commodities, both major and minor items, fell within the ambit of 'sanitary fittings' as per the notification. The Court rejected the assessee's argument and upheld the classification of wash-basins, commodes, and urinals as sanitary fittings for taxation purposes. The Commissioner of Sales Tax was awarded costs, and the reference was answered in favor of the tax authorities.