Tax classification of hair removing soap turns on an unqualified exclusion of soap from the cosmetics entry.

Where a taxing entry covers cosmetics but expressly excludes soap without qualification, all forms of soap fall outside that entry. Hair removing soap sold in soap form was therefore not treated as a cosmetic under entry No. 17 of the First Schedule to the Bengal Finance (Sales Tax) Act, 1941, and the corresponding Delhi Sales Tax Act, 1975 provision did not apply. The commodity was classified by reference to the excluded category of soap, so the higher cosmetic rate was not attracted and the dealer was liable only at the lower rate applicable to its product.

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Issues: Whether hair removing soap is covered by entry No. 17 of the First Schedule to the Bengal Finance (Sales Tax) Act, 1941, and is therefore taxable under clause (a) of sub-section (1) of section 5 of the Delhi Sales Tax Act, 1975.

Analysis: Entry No. 17 covered cosmetics but specifically excluded kum-kum and soap. The exclusion of soap was not limited to any particular variety of soap, and the provision did not qualify the word soap by any restrictive expression. Hair removing soap, when sold in soap form, fell within the excluded category of soap. As a result, the entry dealing with cosmetics had no application to the commodity in question.

Conclusion: Hair removing soap was not covered by entry No. 17 and was liable to tax at the lower rate applicable to the dealer's product. The question was answered in the negative, in favour of the dealer.

Ratio Decidendi: Where a taxing entry excludes soap without qualification, all forms of soap are excluded from that entry, and the commodity must be classified accordingly.

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