Plain-language interpretation of exemption entries confirms oxygen gas is taxable under the residuary sales tax entry.

Oxygen gas was not exempt from sales tax under clause (viii) of entry 38 of Schedule E, because the exemption covered heating systems of air, gas or fluid and did not extend to gas as goods. Applying the plain language of the entry, the court held that the petitioner could not claim a wider construction. Oxygen gas was also taxable under the residuary entry in Schedule C, as it was not specifically mentioned in Schedules A to D. Goods not expressly classified in the specific schedules therefore fell within the residuary tax rate, and the challenge to levy was rejected.

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Issues: (i) Whether oxygen gas manufactured by the petitioner was exempt from sales tax under clause (viii) of entry 38 of Schedule E to S.R.O. No. 135 of 1989; and (ii) whether oxygen gas, not specifically mentioned in Schedules A to D, was nevertheless taxable under the residuary entry in Schedule C.

Issue (i): Whether oxygen gas manufactured by the petitioner was exempt from sales tax under clause (viii) of entry 38 of Schedule E to S.R.O. No. 135 of 1989.

Analysis: Schedule E exempted specified goods, and entry 38 dealt with machines and appliances. Clause (viii) used the expression "air/gas/fluid heating systems", which on its plain language exempted heating systems of air, gas or fluid. The wording did not exempt air, gas or fluid as goods. The language of the entry was clear and did not permit the wider construction suggested for the petitioner.

Conclusion: Oxygen gas was not exempt under clause (viii) of entry 38 of Schedule E and the issue was decided against the petitioner.

Issue (ii): Whether oxygen gas, not specifically mentioned in Schedules A to D, was nevertheless taxable under the residuary entry in Schedule C.

Analysis: Schedules A to D fixed the rates for specified goods, and the residuary entry in Schedule C applied to all goods not otherwise specified in the schedules. Since oxygen gas was not expressly covered by any specific entry, it fell within the residuary classification and attracted tax at the rate prescribed for that entry.

Conclusion: Oxygen gas was taxable under the residuary entry in Schedule C at the applicable rate and the issue was decided against the petitioner.

Final Conclusion: The writ petition failed because oxygen gas was neither exempt under the notification nor outside the charging framework of the schedules, and the demand to restrain levy of sales tax was rejected.

Ratio Decidendi: Exemption entries must be construed according to their plain language, and goods not specifically exempted or classified under a specific schedule are liable to be taxed under the residuary entry.

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