Specific schedule entry controls tax rate on silver ornaments, and the higher rate was upheld for the relevant year.

Silver ornaments were held to fall within serial No. 27 of the taxable goods schedule, so the specific scheduled rate prevailed over the general rate for unclassified goods. Applying the earlier decision on the same commodity, the HC held that the enhanced 7 per cent rate, operative from 15 May 1970, governed the turnover for the 1971-72 assessment year. The Tribunal was therefore not justified in applying the 5 per cent rate, and the higher tax rate on silver ornaments was upheld in favour of Revenue.

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Issues: Whether silver ornaments fell within serial No. 27 of the schedule of taxable goods and were therefore taxable at 7 per cent instead of the general rate of 5 per cent.

Analysis: The assessment year was 1971-72. The Court followed the earlier decision dealing with the same commodity and held that silver ornaments were covered by serial No. 27 of the taxable goods schedule. Once that classification applied, the enhanced rate of 7 per cent, operative from 15 May 1970, governed the turnover for the relevant assessment year.

Conclusion: The Tribunal was not justified in directing levy at 5 per cent. The correct rate applicable to the turnover of silver ornaments was 7 per cent, in favour of Revenue.

Final Conclusion: The reference was answered against the assessee and the higher tax rate on silver ornaments was upheld for the relevant assessment year.

Ratio Decidendi: Where a commodity is specifically covered by a schedule entry, the rate prescribed by that entry prevails over the general rate applicable to unclassified goods.

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