TMI Blog2007 (4) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... . The chemical composition of the vulcanizing solution also indicates that they have the adhesive value in them. The rubber compound, polymers and solvent used along with natural rubber to make the vulcanizing solution makes it a synthetic adhesive used for the purpose of sticking. A bare and close reading of the said Entry No. 91 clarifies the issue that it is only the synthetic adhesive used by the paints industry which are intended to be taxed at the rate of 16%. The principles of ejusdem generis or noscitur a sociis are well settled principles of interpretation and the words of general and wider import used in an entry surrounded by other relevant terms has to draw its colour and meaning from such surrounding words and that cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Commissioner (Appeals), however, allowed the appeal of the assessee and held that the vulcanizing solution is a rubber compound and is not a synthetic adhesive, therefore, 10% sales tax charged under the general residuary Entry N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 proposition of law of applying the common parlance test, he urged for allowing the revision petitions. 5. Mr. Alok Sharma and Mr. R.C. Shah on the side opposite submitted in the first instance that the relevant Entry No. 91 quo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 common analogous sense and not in the general sense. Applying this rule of noscitur a sociis, the word perfumes in the entry was to be understood in conjunction with cosmetics and depilatories . In other words, the word perfumes r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the vulcanizing solution also indicates that they have the adhesive value in them. The rubber compound, polymers and solvent used along with natural rubber to make the vulcanizing solution makes it a synthetic adhesive used for the purpose of stick ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
