Sanitary goods classification limited to pipes used for sanitary purposes; aluminium pipes fell under the residuary entry.

Aluminium pipes sold with sprinklers were held not to fall within entry No. 41 of the 8 March 1969 notification, because the phrase "all types of pipes and pipe fittings" was read in context as limited to pipes and fittings used for sanitary purposes. As the pipes were not shown to be used for sanitary purposes, they were excluded from that entry and classified under the residuary entry. The result was classification at 7 per cent rather than 10 per cent, in favour of the assessee.

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Issues: Whether aluminium pipes sold along with sprinklers fell within entry No. 41 of the notification dated 8 March 1969, so as to be taxable at 10 per cent, or whether they were covered by the residuary entry and taxable at 7 per cent.

Analysis: Entry No. 41 covered all types of sanitary goods and fittings and all types of pipes and pipe fittings. The expression "all types of pipes and pipe fittings" had to be read in the context of the preceding words and was confined to pipes and pipe fittings used for sanitary purposes. The aluminium pipes in question were not shown to be used for sanitary purposes. They therefore did not fall within entry No. 41 and were liable to be classified under the residuary entry.

Conclusion: The question was answered against the Revenue and in favour of the assessee; aluminium pipes were taxable at 7 per cent and not at 10 per cent.

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