Oil well cement was outside the entry "cement" until specifically notified for entry tax purposes.

Oil well cement class 'G' (HSR type) was not covered by the entry "cement" for entry tax purposes because its composition, specifications, and exclusive use in drilling operations distinguished it from ordinary cement in common parlance and commercial understanding. The levy under the Act applied only to notified goods at the rate fixed for the commodity as notified, so the higher rate for the earlier period was unsustainable. The commodity became taxable only from 12 September 2002, when it was specifically notified, and the later lower rate was upheld from that date.

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Issues: Whether oil well cement class 'G' (HSR type) was covered by the entry "cement" for the purpose of levy of entry tax under the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001, and whether tax could be levied at the general cement rate for the period before the specific notification dated 12 September 2002.

Analysis: Section 3 of the Act authorises levy of tax only on notified goods, and the rate depends on the commodity as notified by the Government. The decisive question was whether oil well cement class 'G' (HSR type) would, in common parlance and commercial understanding, fall within the expression "cement". The material on record showed that oil well cement and ordinary portland cement differed in composition, specifications, and end-use: the former was used exclusively in drilling operations and not in ordinary construction activity. The later governmental communication also indicated that the special cement was meant for an exclusive use distinct from ordinary cement and that the original intention of the levy was to tax cement ordinarily used in construction.

Conclusion: Oil well cement class 'G' (HSR type) was not covered by the entry "cement" for the period before its specific notification, and tax at 16% for that earlier period was unsustainable. The commodity became liable only from 12 September 2002 when it was specifically notified, and tax at 4% from that date was upheld.

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