TaxTMI 
TaxTMI 
2011 (7) TMI 1073
X X X X Extracts X X X X
X X X X Extracts X X X X
....nium caps are mainly used in the beer bottles and the iron caps are used in the cold drink bottles. According to the applicant, the iron caps are also known as crown cork. The case of the applicant is that such aluminium caps and iron caps are liable to tax at the point of sale by manufacturer or importer under the Notification No. 5785, dated September 7, 1981, which has been subsequently modified by Notification No. 2376, dated November 23, 1998 enhancing the rate of tax to five perl cent with effect from December 1, 1998. The aforesaid notification has been further modified by Notification No. 101, dated January 15, 2000. However, the rate of tax on corks was remain five per cent. The case of the Department is that the aluminium caps and....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for closing the containers. It may be made of aluminium, iron, rubber, plastic, wood, etc., and it should not be confined to the wood alone. He submitted that in the ancient times, the cork might be made of wood but now due to the shortage of wood and for various other reasons, it is made of plastic, rubber, aluminium, iron, etc. Therefore, the meaning of word cork should be given with reference to the advancement of the technology. Sri B. K. Pandey, learned standing counsel, submitted that the dictionary meaning is irrelevant for the classification of the goods. He placed reliance on the various decisions of the apex court and the High Court. He further submitted that the apex court in various cases has held that for the classification....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w : January 15, 2000. "In exercise of the powers under clause (e) of sub-section (1) of section 3A of the Uttar Pradesh Trade Tax Act, 1948 (U. P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U. P. Act No. 1 of 1904) and in supersession of all previous notifications issued in this behalf, the Governor is pleased to declare that with effect from January 17, 2000, the turnover in respect of the goods mentioned in column 2 of the List below shall be liable to tax at the point of sale specified in column 3 of said List at the rate specified against each in column 4 thereof. List M stands for sale by the manufacturer in Uttar Pradesh I stands for sale by the importer in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ; bung ; spile ; ferrule ; cover ; covering.' (d) Stopper, as defined as per New Oxford Thesaurus of English page 929:- 'A cologne bottle with a cork and chrome stopper cork, lid, cap, top, plug, bung, spigot, spile.' (e) TOP, as defined as per New Oxford Thesaurus of English page 985:- 'she could not screw the top of the coffee jar on straight lid, cap, cover, stopper, cork, bung, plug'." Tribunal held that the dictionary meaning and technical meaning are not relevant for the classification of goods. It is common parlance and how the commodity is known in a commercial sense is relev....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s a stopper. The Tribunal has rightly held that it is a product of chhilka of cork tree. Previously, it is mainly used as stopper to avoid pilferage of homoeopathic medicines in glass containers and in the shuttle cork. Its use may be many which may not be commonly known. As stopper also it is used after providing a particular shape and is put inside the containers. It is never used as a cap. It cannot be used as cap also. The applicant manufactures PP caps made of aluminium caps and iron caps which are mainly used to close the beer bottles and cold drink bottles to avoid pilferage. These are used outside the bottles. In view of the above, the PP caps made of aluminium caps and iron caps cannot be said to be "cork" by any stretch of imag....