Concessional tax rate for tiles applied to marble tiles; classification doubt was resolved in favour of the assessee.

The concessional rate under G.O. Ms. No. 130 applied to marble tiles because the notification covered tiles generally and did not distinguish between mosaic, marble, or granite varieties. The contention that marble tiles fell under entry 43 of the First Schedule was not accepted. Where reasonable doubt exists about the proper entry in a tax schedule, the classification must be resolved in favour of the assessee, and the Tribunal's classification was upheld.

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Issues: Whether the concessional rate under G.O. Ms. No. 130, Revenue (CT-II) Department, dated 14 February 1989 applied to marble tiles sold by the assessee, and whether marble tiles fell under entry 43 of the First Schedule.

Analysis: The concessional rate notification was held applicable to tiles, and no distinction was made between different categories of tiles such as mosaic, marble, or granite. The challenge that marble tiles and marble articles fell under entry 43 of the First Schedule was not accepted. The principle that, in case of reasonable doubt as to the applicable entry in a tax schedule, the benefit goes to the assessee supported the classification adopted by the Tribunal.

Conclusion: The concessional rate applied to marble tiles, and the assessee's classification was upheld.

Ratio Decidendi: Where a tax notification grants a concessional rate to tiles without distinguishing among categories of tiles, and the applicable entry is doubtful, the classification must be resolved in favour of the assessee.

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