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Issues: Whether reinforced cement concrete pipes and asbestos cement pressure pipes used for rural water supply schemes fall within entry 102 of Schedule I as "water supply and sanitary fittings", or are taxable as general goods under section 5(1).
Analysis: The Court read the expression "water supply and sanitary fittings" as a single composite description, the word "fittings" deriving colour from the associated words and referring to articles fitted or fixed to a building or otherwise attached or auxiliary to it. On that construction, pipes laid for carrying water from one place to another, whether underground or overground, do not become "water fittings" merely because they are used in a rural water supply scheme. The impugned clarification treated the earlier Supreme Court decision as if only underground pipes were excluded, but that reading was held to be incorrect. The Court also noted that only pipes actually used as water or sanitary fittings in relation to a building could attract entry 102 to that extent.
Conclusion: The clarification was held to be based on a reading of the Supreme Court decision, and the pipes in question were not treated as falling under entry 102 merely because they were used in rural water supply schemes; they would be taxable under section 5(1) as general goods unless used as fittings of a building.
Ratio Decidendi: Pipes used for conveying water in a supply scheme do not fall within "water supply and sanitary fittings" unless they are fitted to, or are attached or auxiliary to, a building.
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