Specific tariff classification prevails over residuary entry for industrial fuels, with explanatory notification confirming the tax treatment.

Diesel and furnace oil imported for use in an industry were held to fall within a specific entry in Schedule II attracting tax at 7%, rather than the residuary entry for industrial inputs and raw materials. The residuary provision could not be used where the goods were already specifically covered by the schedule. A later notification was treated as explanatory only, clarifying that goods covered by the specific entry could not be shifted to the residuary category. The challenge to the classification therefore failed, and the statutory treatment under the specific entry was upheld.

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Issues: Whether diesel and furnace oil imported for use in the petitioner's industry fall under the specific entry in Schedule II or under the residuary entry for industrial inputs and raw materials.

Analysis: The goods were found to be covered by a specific entry in Schedule II prescribing tax at 7%. The residuary entry could not be invoked where the goods were specifically provided for. The later notification was treated as explanatory, clarifying that goods already covered by the specific entry could not be brought under the residuary entry.

Conclusion: The goods did not fall under the residuary entry and were taxable under the specific entry; the challenge failed.

Final Conclusion: The writ petition was dismissed and the statutory classification of the goods under the specific entry was upheld.

Ratio Decidendi: A residuary entry cannot be applied where the goods are covered by a specific entry, and an explanatory notification may clarify, but not alter, that position.

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