Vulcanising solution tax classification limited by context; higher adhesive rate unavailable for tyre retreading use.

Vulcanising solution used in tyre retreading was treated as an adhesive because it was used to bond rubber layers and had adhesive properties, but it did not fall within the higher-rate entry for synthetic adhesives. Entry No. 91 of the 27.03.1995 notification was confined to synthetic adhesives used by the paint industry, and the broader expression had to be read in context under ejusdem generis and noscitur a sociis. As no separate specific entry applied, the commodity remained taxable at the general residuary rate of 10% rather than 16%.

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Issues: Whether vulcanising solution used in tyre retreading was taxable at 16% as a synthetic adhesive under Entry No. 91 of the notification dated 27.03.1995, or at the general rate of 10% under the residuary entry.

Analysis: Vulcanising solution was found to be an adhesive because it was used for sticking rubber layers in tyre retreading and its composition gave it adhesive value. However, the text of Entry No. 91 showed that the higher rate applied only to synthetic adhesives used by the paint industry. Applying the principles of ejusdem generis and noscitur a sociis, the broader expression had to take colour from the surrounding words, so the entry could not be extended to vulcanising solution used in tyre retreading. No other specific entry prescribing 16% for such commodity was shown.

Conclusion: The commodity was not taxable at 16% under Entry No. 91 and was rightly taxed at 10% under the general residuary entry.

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