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2018 (11) TMI 1145 - HC - VAT and Sales TaxClassification of goods - tyres - Whether under section 14 in Chapter-IV “Goods of special importance in inter-state trade or commerce” of CST Act, 1956, subentry (XIV) of main entry No. (IV) containing reference to “tyres” could be construed as tyres made of “rubber” even when the main classification is of ‘Iron and Steel’? - Applicability of CST Act, 1956. Held that:- The word “tyres” in entry (xiv) of sub-section (iv) of Section 14 of the ‘Central Act’ cannot be read in isolation and has to be read in the group of items in which the entry is made. Sub-section (iv) starts with the words “iron and steels”, thus items referred to in entry (xiv) necessarily has to be read contextually in that background along with other entries being the ‘wheels, tyres, axles and wheels sets’. Here the word “tyres” cannot be read so as to mean rubber tyres. It has to be read conjunctively with other entries, genus of which is iron and steel. Tyres necessarily would not acquire the connotation of rubber tyres so understood in common parlance, unlike a trader specifically dealing with the product. The principle to be adopted for construction of tariff entries is no longer res integra. In the absence of statutory definitions, excisable goods mentioned in tariff entries are to be construed according to the trade practice. The origin of the word “tyres”, as is so described in the dictionary, was in the 15th century denoting curved pieces of iron with which the carriage wheels were shod. In fact, it is also described as a strengthening band of metal fitted around the rim of a wheel especially of a railway vehicle. There can be a case where such tyres may be having a rubber covering, but then it would definitely not cover the activity of the Assessee who is in the business of retreading of rubber tyres - the entry “tyres” in the central legislation would not be construed as tyres retreaded with rubber, even though the main classification is that of iron and steel. Assessee would be liable to be assessed as per the ‘State Act’ and not the ‘Central Act’. Reference disposed off.
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