Industrial cable classification under DVAT resolved by statutory wording, not circulars or HSN references, in favour of the assessee.

Industrial cables were held classifiable under Entry 40 of Schedule III of the Delhi Value Added Tax Act, 2004 because the entry expressly covered industrial cables and did not incorporate any HSN or Central Excise Tariff reference. The statute showed that tariff nomenclature governed classification only where the Legislature said so expressly, and circulars could not narrow the statutory language or substitute for it. In the absence of such incorporation, classification had to follow common parlance and commercial understanding. On the facts, the goods were industrial cables of 1100 volts, consistent with that description, so the residuary entry did not apply and the question of law was answered for the assessee.

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Issues: Whether industrial cables were classifiable under Entry 40 of Schedule III of the Delhi Value Added Tax Act, 2004 or under the residuary entry, and whether the circulars referring to HSN/CET nomenclature could override the statutory entry.

Analysis: Entry 40 expressly used the expression "industrial cables" and elaborated it by listing industrial cables and related categories, but it did not itself incorporate any HSN or Central Excise Tariff reference. The statutory scheme of the DVAT Act showed that wherever the Legislature intended HSN/CET guidance to govern classification, it did so expressly. In such situations, tariff references in circulars can aid interpretation only when the statute itself adopts that method. Where no such express incorporation exists, the proper approach is classification according to the common parlance or commercial understanding of the goods. The circulars could not cut down the width of the statutory entry or substitute for the language used by the Legislature. On the facts, the goods were industrial cables of 1100 volts, a description consistent with the technical understanding of high voltage cables.

Conclusion: The goods were classifiable under Entry 40 of Schedule III, and not under the residuary entry. The question of law was answered in favour of the assessee.

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