Residuary tax entry applied to insulated copper wire made from customer-supplied material, not the specific lower-rate entry

Customer-supplied copper wire converted into insulated copper wire using enamel, fiberglass yarn and paper was held taxable under the residuary entry because the assessee did not sell copper wire as such but rendered a conversion process and supplied the finished product. The notification relied on applied to sale of insulated copper wire, not to the materials used in manufacture, and there was no specific schedule entry covering enamel, fiberglass yarn and paper. The residuary rate of 12.5% therefore applied, and the assessee's challenge failed.

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Issues: Whether, for the assessment period 2005-06, the tax on insulated copper wire prepared from customer-supplied copper wire by using enamel, fiberglass yarn and paper was exigible under the residuary entry at 12.5% or under the specific schedule entry at 4%.

Analysis: The assessee did not sell copper wire as such, but received copper wire from customers, converted it into insulated copper wire by using enamel, fiberglass yarn and paper, and delivered the finished product. The notification relied on applied to sale of insulated copper wire, whereas the present transaction involved supply of the materials used in the conversion process. Since there was no specific schedule entry for enamel, fiberglass yarn and paper, the residuary entry was attracted.

Conclusion: The levy of tax at 12.5% under the residuary entry was upheld and the challenge by the assessee failed.

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