Inclusive statutory definition of foreign liquor brought low-strength beer within the specific sales tax entry, excluding the residuary entry.

Beer containing less than 5% alcohol was treated as foreign liquor under the Bombay Foreign Liquor Rules because the definition of foreign liquor was inclusive and the definition of mild liquor covered foreign liquor with alcoholic strength not exceeding 5% by volume. The later separate mention of mild liquor from 11 May 1973 did not narrow the earlier position, as the listed categories were illustrative rather than exhaustive. Because a residuary sales tax entry applies only where no specific entry covers the goods, such beer fell within the specific sales tax entry and not the residuary entry.

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Issues: Whether beer containing less than 5 per cent alcohol fell within entry 1(2)(b) of Schedule D, Part II of the Bombay Sales Tax Act, 1959, or only under the residuary entry in Schedule E.

Analysis: The relevant sales tax entry underwent changes during the assessment period, but the definition of foreign liquor in rule 3(6) of the Bombay Foreign Liquor Rules, 1953 treated foreign liquor as an inclusive category comprising spirits, wines, fermented liquors and mild liquors. The definition of mild liquor in rule 3(6)(2)(d) covered foreign liquor having alcoholic strength not exceeding 5 per cent by volume. Beer of such strength was therefore within the expression foreign liquor. The separate mention of mild liquor only from 11 May 1973 did not mean that it was excluded earlier, because the earlier formulation used inclusive language and the listed items were illustrative rather than exhaustive. A residuary entry could apply only if no specific entry covered the goods.

Conclusion: Beer containing less than 5 per cent alcohol was covered by the relevant sales tax entry and not by the residuary entry. The answer to the reference was in the affirmative against the assessee and in favour of the Revenue.

Ratio Decidendi: Where a statutory definition uses inclusive language, the expressly listed items are illustrative and the wider defined category continues to cover all its constituent forms unless a later amendment specifically carves out an exclusion.

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