1998 (2) TMI 552 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of entry No. 110 and entry No. 182 of the Karnataka Sales Tax Act, 1957 regarding the taxation of plastic tiles made of marblex vinyl.

Analysis:
The case involved a revision petition filed by the assessee challenging the order of the Karnataka Appellate Tribunal regarding the taxation of marblex vinyl tiles under the Karnataka Sales Tax Act, 1957. The assessee contended that the tiles should be taxed at 10% under entry No. 110, while the assessing authority and the Appellate Tribunal held that they should be taxed at 15% under entry No. 182. The key issue was whether the tiles made of plastics should be taxed under entry No. 110 or entry No. 182.

The petitioner argued that entry No. 110 covers all articles made of plastics, including polythene, PVC, and similar materials, while entry No. 182 pertains to floor, wall, and roofing tiles of all makes not covered by any other entry. The Government Advocate, on the other hand, contended that entry No. 182 is a specific entry governing tiles, whereas entry No. 110 is a general entry covering plastic articles. The crux of the matter was determining which entry should apply when an article falls under both.

The Court analyzed the language of entry No. 110 and entry No. 182 of the Act. Entry No. 110 explicitly includes plastic sheets and all articles made of plastic materials, which encompasses tiles made of plastic. The Court emphasized that the legislative intent was to cover all articles made of plastics under entry No. 110. On the other hand, entry No. 182 specifically excludes articles covered by any other entry and pertains only to floor, wall, and roofing tiles. Therefore, the Court concluded that when plastic tiles are considered articles made of plastic, they fall under entry No. 110 and are taxable accordingly.

The Court relied on a previous decision where it was held that when an article falls under both a specific and a general entry, the specific entry takes precedence. In this case, since marblex vinyl tiles were made of plastic materials, they were deemed to be covered by entry No. 110, overriding entry No. 182. As a result, the revision petition was allowed, and the impugned order was set aside, ruling in favor of the assessee.