Plain meaning of concessional tax entry applied to paper cones sold for textile use; restrictive distinction rejected.

Paper cones sold to spinning mills were held to fall within the concessional entry for "bobbin, cones and tubes" in the relevant Government Order. The court rejected a restrictive distinction between metal cones and paper cones because the text used a generic description of "cones" and did not limit the benefit by material composition. It also found no proper material supporting the revisional authority's narrower view. The suomotu revision was set aside and the tax reduction at four per cent was restored.

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Issues: Whether paper cones sold to spinning mills fall within the expression "bobbin, cones and tubes" in G.O.P. No. 1316/CT & RE dated 7 October 1988 so as to attract the reduced rate of tax.

Analysis: The Government Order granted a reduced rate of tax to sale by any dealer of textile machinery spares, including "bobbin, cones and tubes". The assessee showed that the goods supplied were cones sold to spinning mills for textile use. The revisionary authority's distinction between metal cones and paper cones was held unwarranted, because the order referred only to "cones" and did not confine the benefit to any particular material. The revisional view was also rejected as unsupported by any proper material and as an impermissible restrictive reading of the Government Order.

Conclusion: The paper cones were covered by the Government Order and the reduced rate of tax applied; the issue was decided in favour of the assessee.

Final Conclusion: The suo motu revision was set aside and the order granting tax reduction at four per cent was restored.

Ratio Decidendi: Where an exemption or concessional-tax entry uses a generic description of goods without limiting the material composition, the entry must be applied according to its plain terms and cannot be narrowed by introducing an unsupported distinction.

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