1999 (3) TMI 601 - HC - VAT and Sales Tax

High Court: Rubber bladders in footballs classified as goods for outdoor sports

The High Court ruled in favor of the dealer, holding that rubber bladders used in footballs qualify as goods for outdoor games or sports under the U.P. ... - Issues: Classification of rubber bladder for footballs under U.P. Trade Tax ActAnalysis:1. Issue: Interpretation of the notification dated September 7, 1981, regarding the classification of goods for indoor or outdoor games.- The assessing officer initially considered the rubber bladder as unclassified goods, arguing that it cannot be used for games or sports. However, the Assistant Commissioner and the dealer contended that the rubber bladder falls under the category of goods specified in item No. 21 of the notification.2. Issue: Determination of whether the rubber bladder used in footballs qualifies as goods for outdoor games or sports.- The High Court emphasized that the rubber bladder is an essential component used in footballs for inflation, clearly indicating its association with outdoor games or sports. The Court rejected the assessing officer's restrictive interpretation and upheld that the rubber bladder falls under the category of sports goods as per the notification.3. Issue: Impact of the subsequent amendment to the notification dated March 31, 1990, on the classification of rubber bladders.- The Court noted that the amended entry explicitly included rubber bladders in the category of sports goods, indicating that they were previously excluded. The Court criticized the Tribunal's decision to rely on the amended entry, emphasizing that the original entry from 1983-84 should be interpreted as it stood during the relevant period. The amendment was viewed as a clarification rather than a change in classification, further supporting the dealer's contention.4. Judgment:- The High Court allowed the revision petition, overturning the Tribunal's decision and dismissing the Commissioner's second appeal regarding the classification and tax rate of rubber bladders used in footballs. The Court held that the rubber bladder qualifies as goods for outdoor games or sports, as per the original notification, and ordered the respondent to bear the costs of the revision petition.