TMI Blog2018 (11) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... es 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. - STR No. 1 of 2011 - - - Dated:- 24-10-2018 - Mr. Justice Sanjay Karol, Judge And Mr. Justice, Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -State trade or commerce.- It is hereby declared that the following goods are of special importance in inter-State trade or commerce:- (i) to (iii) (iv) iron and steel, that is to say, -- (i) to (xiii) (xiv) wheels, tyres, axles and wheels sets; (xv) (xvi) defectives, rejects, cuttings, or end pieces of any of the above categories. (v) to (vi) 15. Restrictions and conditions in regard to tax on sale or purchase of declared goods within a State.- Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely:- (a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed five per cent of the sale or purchase price thereof; (b) to (d) 7. In the instant case there is no question of repugnancy between the two Statutes. There is no dispute about the Assessee being subjected to levy of tax. The only issue being applicability of the Statutes, Central or the State Act. If th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticles made of plastics . Articles made of plastic means articles made wholly of commodity commercially known as plastics, and not articles made from plastics along with other materials. By no canon of construction, a plastic torch can be read in conjunction with plastic tubes, rods, sheets, foils, etc., made of plastics. Plastic torch is a distinct and different commodity commonly known in the market as torch. Ordinarily, torch is not described by the name of the material used in the tube in which the device of torch is housed. The commodity known, advertised, sold and offered in the market is torch. The prefix plastic merely describes the quality of torch as distinguished from other types of torches. It is not sold primarily as plastic tube. 5. By a catena of decisions it is settled law that an expression used in a taxing statute for describing a commodity must be given the meaning which is generally given to it by a person in the trade or in the market of commodities and should be interpreted in the sense the person conversant with the subject-matter of the statute and dealing with it would attribute to it. (See Ramavatar Budhaiprasad v. Asstt. STO, AIR 1961 SC 1325.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of that type of goods dealt with by that type of goods in that type of market, should be searched. 28. In Reliance Cellulose Products Ltd., Hyderabad Vs. Collector of Central Excise, Hyderabad-I Division, Hyderabad, (1997) 6 SCC 464 it was observed: 20. In other words, if the word used in a fiscal statute is understood in common parlance or in the commercial world in a particular sense, it must be taken that the Excise Act has used that word in the commonly understood sense. That sense cannot be taken away by attributing a technical meaning to the word. But if the legislature itself has adopted a technical term, then that technical term has to be understood in the technical sense. In other words, if in the fiscal statute, the article in question falls within the ambit of a technical term used under a particular entry, then that article cannot be taken away from that entry and placed under the residuary entry on the pretext that the article, even though it comes within the ambit of the technical term used in a particular entry, has acquired some other meaning in market parlance. For example, if a type of explosive (RDX) is known in the market as Kala Sabun by a s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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