Agarbathies as perfumes: binding precedent brought incense products within the taxing entry and confirmed liability.

Agarbathies were treated as falling within the expression "perfumes" in item 36 of the First Schedule to the Andhra Pradesh General Sales Tax Act, because binding precedent had construed perfume broadly to include odorous fragrance emitted by burning substances such as incense. The Court followed the Supreme Court view on dhoop and dhoop-battis and the Orissa High Court's approach that agarbathies are articles of perfumery. Contrary authorities were distinguished on the basis of different statutory language and classification schemes, and ejusdem generis was not accepted as excluding agarbathies. The result was that the goods were taxable under the entry.

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Issues: Whether agarbathies fall within the meaning of "perfumes" under item 36 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957 and are therefore taxable under that entry.

Analysis: The controlling question was whether agarbathies are covered by the expression "perfumes" in item 36. The Court relied on the Supreme Court decision holding that dhoop and dhoop-battis fall within the ordinary meaning of perfume, since the word encompasses odorous fumes or fragrance emitted by burning substances such as incense. It also followed the Orissa High Court view that agarbathies are covered as articles of perfumery. The contrary authorities cited by the petitioners were distinguished on the basis of the different statutory language and classification schemes involved. The principle of ejusdem generis was not accepted as excluding agarbathies, because the entry was read in light of the binding interpretation already placed on the word "perfume".

Conclusion: Agarbathies were held to fall within item 36 as perfumes and were liable to tax under that entry.

Final Conclusion: The writ petitions failed because the disputed goods were held taxable as perfumery under the relevant schedule entry.

Ratio Decidendi: Where a taxing entry uses the word "perfumes" in a context where binding precedent has construed that expression to include incense products emitting fragrance on burning, agarbathies are taxable under that entry.

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