Tax classification of Sintex water drums favours the more beneficial container entry over the polythene articles entry.

Sintex water drums were considered capable of classification under both the entry for articles made of polythene and the entry for containers other than gunnies. Applying the settled rule for taxing statutes, the more beneficial entry to the assessee had to prevail, and later legislative inclusion of polythene drums in the container entry supported that reading. The drums were therefore treated as falling under the container entry rather than the polythene articles entry for tax purposes.

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Issues: Whether Sintex water drums were classifiable under the entry for articles made of polythene or under the entry for containers other than gunnies, and which competing entry should prevail for tax purposes.

Analysis: The item was capable of falling within either of the two competing entries. In such a situation, the settled rule of interpretation for taxing statutes required adoption of the entry more beneficial to the assessee. The fact that the legislature later specifically included polythene drums in the container entry also supported the view that the item could properly be treated as a container.

Conclusion: Sintex water drums were held to fall within the container entry and not within the entry for articles made of polythene.

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