Classification of polynite sheets turns on retained plastic character, so processed sheets fall outside the plastics entry.

Polynite sheets were held to retain their character as processed plastics, because the manufacturing process produced a marketable sheet form without changing the underlying plastic nature of the material. Their later suitability for further fabrication did not make them goods made primarily from plastics within Entry 19A of Schedule E of the Bombay Sales Tax Act, 1959. The product therefore fell outside the charging entry and was classified under the residuary entry. The court's reasoning turned on the product's essential character and the distinction between processed plastics and goods made primarily from plastics.

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Issues: Whether polynite sheets manufactured by the assessee are goods made primarily from plastics under Entry 19A of Schedule E of the Bombay Sales Tax Act, 1959, or fall within the residuary entry.

Analysis: The character of the product and the manufacturing process showed that the polymer mass emerged as sheets in a processed and marketable form, but its use as sheets was only as a convenient mode of preserving and selling processed plastics. The sheets did not cease to be plastics merely because they could later be subjected to further fabrication or processing for specific end uses. On that basis, they could not be treated as goods made primarily from plastics within Entry 19A.

Conclusion: Polynite sheets are plastics and not goods made primarily from any kind of plastics; therefore, they do not fall under Entry 19A and are covered by the residuary entry. The answer to the reference is in favour of the assessee and against the Revenue.

Final Conclusion: The reference was answered by upholding the Tribunal's view on classification of polynite sheets under the sales tax schedule.

Ratio Decidendi: A product which retains its character as processed plastics and is merely put into a convenient marketable form does not become goods made primarily from plastics for the purpose of the charging entry.

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