Notified classification of agarbatti as perfumery sustained luxury goods tax rate where the statutory entry controlled assessment.

A notified tariff entry, once it places perfumery within the luxury goods category, must be applied as classified and cannot be disregarded on the ground that the item is commonly used. On the materials accepted in the order, agarbatti was treated as perfumery; accordingly, it fell within the later luxury goods entry and attracted the higher sales tax rate. The Tribunal noted that any challenge to the correctness of the statutory classification lies elsewhere, not by ignoring the notified entry in assessment. The assessing authority's treatment of agarbatti as luxury goods was therefore upheld and the assessments were restored.

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Issues: Whether agarbatti fell within the entry for perfumery and was taxable as luxury goods at the enhanced rate under the sales tax schedule.

Analysis: The earlier entry treated perfumery and similar articles as goods other than luxury goods, but the later notification shifted perfumery to the luxury goods entry. The decisive question was whether agarbatti could be excluded from that category on the footing that it is an article of common use. The governing approach was that, where a commercial item has been brought within a statutory entry, the Tribunal cannot disregard the notified classification on the ground that the entry is wrongly framed; the remedy against an allegedly incorrect entry lies elsewhere. On the materials accepted in the order, agarbatti was treated as perfumery, and once perfumery was placed in the luxury goods entry, the higher rate became applicable.

Conclusion: Agarbatti was liable to be taxed as luxury goods under the relevant entry, and the assessments made by the assessing authority were restored.

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