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of <h1>Supreme Court reclassifies P.V.C. Resins & Synthetic Hydrocarbon resin for Octroi duty levy</h1> The Supreme Court ruled in favor of the Municipal Corporation and Municipal Council, setting aside the High Court's decision regarding the classification ... Whether for the purpose of levy of Octroi duty P.V.C. Resins in powder form would fall under plastic and plastic goods, plastic powder' in Item 53(c) of Schedule I to Maharashtra Municipality (Octroi duty) Rules, 1968 framed under the Bombay Provincial Municipal Corporation Act, 1949 or under Item 32(c) of Schedule H to the Municipal Corporation (Levy of) Octori Rules, 1965 framed under the Bombay Municipal Corporation Act, 1888. Whether for the purpose of levy of Octroi duty Synthetic Hydrocarbon resin is to be treated as Plastic and plastic goods, plastic powder' in Item 32(c) of Schedule H to the Municipal Corporation (Levy of) Octroi Rules 1965 framed under the Bombay Municipal Corporation Act, 1888? Held that:- The appropriate manner in which the commodity in the present case, namely, plastic powder, has been treated as a separate entry it is brought to tax under Item No. 32(c) or 53 (c) to Schedule H under the Relevant Rules. Similar would be the position with reference to Hydrocarbon resins. Even Hydrocarbon resin is treated on the same footing as a synthetic plastic and, therefore, the goods in question cannot be treated as plastic goods or plastic powder but as separate goods and therefore, we cannot accept the contention put forth on behalf of the respondents that the said goods are neither plastic in nature nor powder in form and we do not accept the contention that Hydrocarbon resin is distinct from plastic. In view of the above discussion, we allow the appeals filed by the Municipal Corporation and Municipal Council, Thane and set aside the order made by the High court by declaring the goods as falling within the Entry as stated earlier. In the circumstances of the case, the parties on either side shall bear their respective costs. Issues:1. Whether P.V.C. Resins in powder form fall under plastic and plastic goods for Octroi duty levy.2. Whether Synthetic Hydrocarbon resin is considered as Plastic and plastic goods for Octroi duty levy.Issue 1: P.V.C. Resins in powder form classification for Octroi duty levy:The appeals revolve around the classification of P.V.C. Resins in powder form for Octroi duty levy under the relevant rules. The High Court held that P.V.C. Resins do not fall under 'plastic' but under 'chemicals.' The respondents argued that P.V.C. Resins are not plastic goods as they are used as ingredients in manufacturing plastic goods and do not meet the criteria for plastic. They contended that P.V.C. Resins are polymers synthesized for adhesive use, distinct from plastic, and should not be subject to Octroi duty under the specific entry for plastic goods. The Supreme Court analyzed the technical details and commercial understanding of the term 'plastic' and concluded that P.V.C. Resins in powder form should be classified separately under the relevant rules, not as plastic goods. The Court allowed the appeals filed by the Municipal Corporation and Municipal Council, setting aside the High Court's decision.Issue 2: Classification of Synthetic Hydrocarbon resin for Octroi duty levy:The second set of appeals concerned the classification of Synthetic Hydrocarbon resin for Octroi duty levy under the Municipal Corporation Act. The respondents argued that Synthetic Hydrocarbon resin should not be considered as plastic goods for Octroi duty purposes. They contended that Hydrocarbon resin is distinct from plastic and should be treated as a separate category. The Supreme Court analyzed the technical distinctions between resin and plastic, noting that the commercial understanding of the term 'plastic' includes various forms of plastic material. The Court held that Hydrocarbon resin should be treated similarly to synthetic plastic and not as a separate category. Therefore, the Court rejected the argument that Hydrocarbon resin is distinct from plastic and upheld the classification of Synthetic Hydrocarbon resin under the relevant Octroi duty entry. The appeals filed by the Municipal Corporation and Municipal Council were allowed, overturning the High Court's decision.In conclusion, the Supreme Court clarified the classification of P.V.C. Resins in powder form and Synthetic Hydrocarbon resin for Octroi duty levy, emphasizing the commercial understanding and technical aspects of the materials. The Court ruled in favor of the Municipal Corporation and Municipal Council, setting aside the High Court's judgment and upholding the classification of the goods under the specific Octroi duty entries.
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