Broad construction of washing materials notification: Vim fell within the exempt category and attracted only single-point tax.

The Allahabad HC construed the notification covering "washing soaps and other materials used for washing purposes" broadly and held that the phrase "other materials" was not confined by ejusdem generis to washing soaps alone. Because Vim was used with water and in the washing process required sprinkling, rubbing and rinsing, it fell within that category. On that footing, the goods attracted only the single-point levy at the manufacturer's first sale in Uttar Pradesh, and further taxation at the assessee's sale stage was not justified. The assessee was therefore entitled to exemption from multiple-point tax on the turnover of Vim.

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Issues: (i) Whether Vim fell within the notification covering "washing soaps and other materials used for washing purposes"; (ii) whether, on that footing, the sale of Vim purchased from manufacturers in Uttar Pradesh was liable to multiple-point tax.

Issue (i): Whether Vim fell within the notification covering "washing soaps and other materials used for washing purposes".

Analysis: The notification was held to be wide in its terms. The expression "other materials used for washing purposes" was not confined to articles ejusdem generis with washing soaps. Vim was found to be used with water and to require sprinkling, rubbing and rinsing in the cleaning process, so it answered the description of a material used for washing purposes.

Conclusion: Vim fell within the category of "other materials used for washing purposes".

Issue (ii): Whether, on that footing, the sale of Vim purchased from manufacturers in Uttar Pradesh was liable to multiple-point tax.

Analysis: Once Vim was treated as covered by the notification, it attracted the single-point levy applicable to such goods at the point of first sale by the manufacturer. The assessee had purchased the goods from the manufacturer in Uttar Pradesh, so further taxation at the assessee's sale stage was not justified.

Conclusion: The levy of multiple-point tax was not justified and the assessee was entitled to exemption from further tax on the turnover of Vim.

Final Conclusion: The reference was answered in favour of the assessee, and Vim was held to be covered by the notified category of washing materials, attracting only single-point tax.

Ratio Decidendi: Where the language of an exemption or concessional notification is wide enough, the expression "other materials used for washing purposes" is not to be confined by ejusdem generis to washing soaps alone, and goods used in the washing or cleaning process with water fall within that category.

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