1996 (3) TMI 515

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....t the point of first sale in the State by a dealer who is liable to tax under section 5. 4 95. Plywood, veneer plywood do. 10" If entry 94 governs the situation, the levy of tax would be 4 per cent whereas if the situation is governed by entry No. 95, it would be 10 per cent. 2. During the years in question the petitioner-assessee trading in the name and style "Southern Veneers and Wood Works Ltd." showed turnover of Rs. 5,02,140 and Rs. 5,82,500 respectively for the above years. 3. The assessing authority (Agricultural Income-tax and Sales Tax Officer, Thalassery) observed that "veneer" means one which is used for manufacturing match box as against the veneer manufactured by the dealer in this case used as the decorative veneer and....

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....st Schedule to the KGST Act, 1963 is as under: Item No. 94 Splints and veneers 14 per cent. Item No. 95 Plywood, veneer plywood and hardboard. 10 per cent. Item No. 94 is 'splints and veneers'. The veneers mentioned here is clearly those used for manufacture of match boxes. But, item No. 95 is 'plywood, veneer plywood and hardboard'. The assessing authority has assessed the commodity as veneer plywood. The appellant has produced the sample of veneers. 'Veneer' is thin covering of finer wood for furniture, etc. The item is used for manufacture of the decorative plywood. So, it will come under the item veneer plywood in item No. 95 of the First Schedule, taxable at 10 per cent. So, the levy of tax at 10 per cent is proper and therefore....

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....e Webster's Third New International Dictionary, Volume 3 to mean more or less the same thing. It would be more convenient to reproduce item No. (2) therein as follows: "(2) any one of the thin layers that are glued or otherwise bonded together to form plywood." Even after taking into consideration the situation would not change because on a plain reading of entry Nos. 94 and 95 what is relevant is the article which is subject to levy of tax. Reading the above observations of the three authorities, there is no difficulty about the article and it is attempted to be understood in terms of its use which is not permissible. In taxing statute what is taxable is the article referred to in the entry and it cannot be understood in the context of i....