Commercial meaning of "films" governs tax classification of polythene packing sheets; higher rate cannot apply retrospectively.

Polythene sheets and rolls used for packing were treated as "all kinds of films" within the residual entry 7-A of the Tamil Nadu General Sales Tax Act because the term "film" bears its ordinary commercial meaning and includes thin polyethylene wrapping material; the narrower classification adopted below was rejected. The commodity was therefore taxable under entry 7-A from 13 September 1977. For the period before that date, the goods did not fall under entries 6 or 7 and remained assessable only at the general rate of 4 per cent, so the higher rate could not be applied retrospectively to the earlier turnover.

---

---

Issues: (i) whether polythene sheets and rolls used for packing purposes fell within the expression "all kinds of films" under entry 7-A of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959; (ii) whether the turnover prior to 13 September 1977 could be subjected to tax at 15 per cent instead of 4 per cent.

Issue (i): Whether polythene sheets and rolls used for packing purposes fell within the expression "all kinds of films" under entry 7-A of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Entry 6 dealt with cinematographic films and entry 7 with photographic and similar films, while entry 7-A was introduced in wide terms to cover all kinds of films not specified elsewhere in the Schedule. The meaning of "film" in standard dictionaries includes thin flexible sheets of polyethylene used for wrapping and packaging. On that understanding, the fact that the material was sold in sheet or roll form and used as packing material did not alter its character as a film. The narrower view taken by the first appellate authority was held to be unsustainable.

Conclusion: The commodity fell within entry 7-A and was taxable under that entry from 13 September 1977.

Issue (ii): Whether the turnover prior to 13 September 1977 could be subjected to tax at 15 per cent instead of 4 per cent.

Analysis: Before the introduction of entry 7-A, the commodity did not fall under entries 6 or 7, and the assessing officer had correctly applied the general rate of 4 per cent for the earlier period. The revisionary authority was not justified in applying the higher rate to the entire assessment year when the taxability changed only from the date of introduction of entry 7-A.

Conclusion: The turnover relating to the period before 13 September 1977 remained taxable only at 4 per cent, and the higher rate could not be applied retrospectively to that period.

Final Conclusion: The assessee succeeded only in part: the commodity was held taxable under entry 7-A from 13 September 1977, but the pre-13 September 1977 turnover was directed to be taxed at the lower rate. The appeal was therefore partly allowed.

Ratio Decidendi: Classification of goods under a taxing entry must be made according to the ordinary and commercial meaning of the expression used, and a wide residual entry covering all kinds of films extends to polyethylene sheets used for wrapping and packing unless they are specifically covered elsewhere in the Schedule.

---