1986 (5) TMI 261 - HC - VAT and Sales Tax

Summary

Issues: Whether agarbathi falls under entry 80 of the First Schedule to the Kerala General Sales Tax Act.

The Revenue challenged the classification of agarbathi under entry 80 of the Act, contending it should be considered as "other perfumeries and cosmetics." The Appellate Tribunal disagreed with this classification, leading to the Revenue's revision petition.

The Senior Government Pleader argued for agarbathi to be categorized as "other perfumeries and cosmetics," citing relevant case law. However, the Court disagreed, emphasizing the need to interpret the meaning of the words in entry 80 within the context of the statute. Applying the principle of ejusdem generis, the Court concluded that agarbathi does not qualify as a "perfumery" akin to "talcum powder" mentioned in the entry. Therefore, the turnover of agarbathis should be assessed at the general rate, not the specific 10 per cent rate under entry 80.

The Court found no merit in the tax revision case and dismissed it accordingly.