Classification of wire nails as fasteners under the VAT Act upheld on commercial meaning and specific-entry rule.

Wire nails are classifiable as fasteners under Entry 79 Part II of Schedule II of the VAT Act because classification must first be tested against the specific entry, commercial meaning governs, and the residuary entry can be used only as a last resort. On the ordinary trade understanding, fasteners are devices used to attach or secure objects, and wire nails perform that fastening function alongside the items named in the entry. The Revenue did not establish any cogent basis to exclude wire nails from the specific entry, so they do not fall under the residuary entry.

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Issues: Whether wire nails fall within the meaning of fasteners under Entry 79 Part II of Schedule II of the VAT Act or are classifiable under the residuary entry in Part IV of Schedule II.

Analysis: Classification must first be attempted under the specific entry and resort to the residuary entry is permissible only as a last option. The commercial or trade meaning of the expression is relevant, and the burden to justify classification under the residuary entry lies on the Revenue. On the ordinary understanding of the term, fasteners are devices used to attach or secure objects, and wire nails perform a similar fastening function to screws and other items named in Entry 79. The record did not show any cogent basis for excluding wire nails from the specific entry or for placing them in the residuary entry.

Conclusion: Wire nails are covered by Entry 79 Part II of Schedule II of the VAT Act as fasteners and do not fall under the residuary entry.

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