TaxTMI 
TaxTMI 
2007 (4) TMI 602
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....spondent-assessee. 2. The Assessing Authority imposed difference tax of 6% on the sale value of such vulcanizing solution holding the same to be taxable at the rate of 16% purportedly under Entry No. 91 of the notification, S. No. 713, S.O. No. 399 dated 27-3-1995 which Entry reads as under :- "91. Paints, Pigments, Enamels, cement based water colours, Dry distempers, Oil-based distempers, Emulsion paints including acrylic and plastic emulsion paints, Lacquers including Cellulose Lacquers, Varnishes, all types of synthetic adhesives, all types of polish (other than boot- polish), Turpentine oil, white oil, Double boiled linseed oil, Thinners, all kinds of paint removers and all kinds of wall papers." 16% 3. The Deputy Commiss....
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....ber compound and solvent and, therefore, it was nothing but synthetic adhesive used for sticking together of sheets of rubber and was, therefore, taxable at the rate of 16%. He, therefore, assailed the orders passed by the two Appellate Authorities below and submitted that the revision petitions deserve to be allowed and the order of the Assessing Authority deserved to be restored. He submitted that it is well settled that common parlance test is the acid test for interpreting the taxability of a particular commodity and how a particular commodity is understood in the trade parlance by the persons concerned with that particular trade or business is the relevant factor. Relying on certain judgments of the Apex Court for this well settled pro....
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.... residuary or sweeping-up words, then the verbal context and the linguistic implications of the preceding words limit the scope of such words." 6. He further relied upon the judgment of Hon'ble Supreme Court in Pardeep Aggarbatti v. State of Punjab and others [(1997) 107) STC 561] in which the view of Bombay High Court in Commissioner of Sales Tax v. Gordhandas Tokersey [(1983) 52 STC 381 (Bom.)] was approved. The Bombay High Court noted that it was a well-known rule of construction that words in such entries had to be construed with reference to the words found in immediate connection with them. When two or more words which were capable of being understood in an analogous manner were coupled together, they had to be understood in the....
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....harging only the general rate of 10% under residuary entry, since no other specific entry was available for applying 16% rate of tax. Mr. R.B. Mathur, learned counsel for Revenue also could not point out any other specific entry providing for 16% rate of tax for all types of synthetic adhesives. 8. Having heard the learned counsels and after going through the relevant case laws cited at the bar, this Court is of the opinion that there is no force in these revision petitions filed by the Revenue. The commodity in question vulcanizing solution is an adhesive is beyond the pale of doubt because it is used for sticking together two layers of rubbers in the tyre retreading industry of the respondent assessee. The chemical composition of th....