Specific notification entry for generating sets covered AC generator sets, excluding the residuary higher tax rate.

AC generator sets fell within the specific notification entry for "all kinds of generating sets" and were taxable at four per cent. The wider expression was held sufficient to cover AC generator sets, so the residuary entry could not be used to impose the higher ten per cent rate. The Revenue's tax revision failed, and the assessment rate adopted by the Tax Board was upheld.

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Issues: Whether AC generator sets fell within the entry "all kinds of generating sets" under Notification No. F.4(12)/F/Tax-Div./2001-12 dated 29.03.2001 and were therefore taxable at four per cent, or were liable to tax under the residuary entry at ten per cent.

Analysis: The notification in force during the relevant period contained entry No. 41 covering "all kinds of generating sets" at four per cent. That expression was held wide enough to include AC generator sets. In view of the specific entry, there was no justification to place the goods in the residuary entry and apply a higher rate of tax.

Conclusion: The AC generator set was correctly taxed at four per cent under the specific notification entry and not under the residuary entry at ten per cent, in favour of the assessee.

Final Conclusion: The tax revision filed by the Revenue failed, and the assessment rate adopted by the Tax Board was upheld.

Ratio Decidendi: Where a specific tariff or notification entry is wide enough to cover the goods in question, the residuary entry cannot be invoked to impose a higher rate of tax.

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