Transmission rubber belting remains taxable; earlier precedent on its non-similarity to exempt cloth-based goods continues to apply.

Transmission rubber belting was held not to fall within item 30-B of Schedule B to the Punjab General Sales Tax Act, 1948, because it was not a product similar in nature to canvas cloth, tarpaulins or other cloth-based goods covered by that entry. The fact that it was manufactured on a canvas base did not make it an exempt article. The earlier Division Bench ruling treating the goods as taxable continued to govern, and a later Supreme Court decision on a different taxing entry and different article did not displace that binding precedent. The common parlance test was found to offer no support to the claim for exemption.

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Issues: Whether "transmission rubber belting" is exempt from sales tax under item 30-B of Schedule B to the Punjab General Sales Tax Act, 1948, and whether the earlier decision holding it taxable continued to govern the matter.

Analysis: The claimed exemption depended on whether the goods could be treated as "such varieties of canvas cloth, tarpaulins and similar other products, manufactured with cloth as base". The prior Division Bench decision had already examined the nature of transmission rubber belting and held that, though manufactured on a canvas base, it was not a product similar in nature to canvas cloth or tarpaulins. The Court also held that the later Supreme Court decision on a different taxing entry and different article did not displace the earlier binding precedent, and that the common parlance approach did not assist the petitioners.

Conclusion: Transmission rubber belting is not exempt under item 30-B of Schedule B to the Punjab General Sales Tax Act, 1948, and the earlier precedent continues to apply.

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