Inclusive tariff entry for packing articles covers boards commonly understood as packing materials under commercial parlance

Duplex coated board, mill board and grey board were held to fall within the expression "articles of packing" in Entry No. 9 of Schedule II(B) of the Uttarakhand Value Added Tax Act, 2005. The entry was construed as inclusive, so its scope was not limited to the examples of boxes, cases and cartons expressly mentioned. Applying the commercial parlance test, the boards were treated as packing articles because they are commonly understood in the market as materials used for packing. Taxability was determined by the character of the goods sold, not by their later use. The Tribunal's view was upheld and no interference was made.

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Issues: Whether duplex coated board, mill board and grey board fall within the expression "articles of packing" in Entry No. 9 of Schedule II(B) of the Uttarakhand Value Added Tax Act, 2005.

Analysis: The levy is attracted on the sale of the goods and not on their subsequent user. The entry uses inclusive language by referring to articles of packing and specifically mentions boxes, cases and cartons, showing that the expression is not confined to the enumerated examples alone. Since the boards manufactured and sold by the respondent are commonly used for making packing materials, the commercial parlance test supports treating them as falling within the inclusive scope of the entry. The Tribunal also relied on the view already taken in reported decisions that such boards are understood in the market as articles of packing.

Conclusion: The boards are articles of packing and are covered by the entry.

Final Conclusion: No interference was called for with the Tribunal's view, and the revision was disposed of.

Ratio Decidendi: Where a tariff entry uses inclusive language, goods commonly understood in the commercial world as falling within that description are covered by the entry, and tax liability is determined by the character of the sale goods rather than their later user.

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