Plain wording in tax notifications prevents artificial bifurcation of assembled tractors into separate taxable components.

A taxing notification prescribing different rates for tractors manufactured in India and tractors imported in assembled or unassembled form could not be stretched to split an assembled tractor into imported and indigenous components. The plain wording of the notification did not authorise artificial bifurcation of a composite tractor for separate taxation, and a tractor assembled in India remained taxable as a tractor manufactured in India even if some parts were imported. The commentary emphasises that a charging entry must be applied according to its text, without reading in distinctions not expressly provided.

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Issues: Whether the rate of tax under the notification dated 31.03.1981 could be bifurcated between imported and indigenous components of tractors assembled in India so as to levy tax at 8% on imported parts and 4% on indigenous parts.

Analysis: The reference arose under section 42 of the Haryana General Sales Tax Act, 1973. The notification issued under section 15 of the Act prescribed tax at four per cent for tractors manufactured in India and eight per cent for tractors imported from outside India in assembled or unassembled form. The language of the notification did not create a further classification between imported components and indigenous components of a tractor assembled in India. A tractor assembled in India did not cease to be a tractor manufactured in India merely because some parts were imported. The charging entry had to be construed according to its plain language, and the Tribunal could not split the composite tractor into separate taxable fragments by reading into the notification a distinction that was not there.

Conclusion: The Tribunal misapplied the notification and the tax could not be levied at different rates on imported and indigenous components of the assembled tractor. The issue was answered in favour of the assessee and against the Revenue.

Final Conclusion: The reference was disposed of by holding that an assembled tractor manufactured in India remained taxable as a tractor manufactured in India, without artificial bifurcation of its imported and indigenous components.

Ratio Decidendi: A taxing entry must be applied on its plain wording, and a composite article cannot be artificially bifurcated for taxation unless the statute or notification expressly authorises such separate treatment.

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