1995 (2) TMI 384 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of entry No. 49 of Schedule C, Part II of the Bombay Sales Tax Act, 1959 regarding the classification of specific items as sanitary ware or not.

Detailed Analysis:

1. Background and Contention:
The case involves a reference under section 61(1) of the Bombay Sales Tax Act, 1959, regarding the classification of certain items as sanitary ware under entry No. 49 of Schedule C, Part II. The assessee contended that the items in question, including stopcock, bibcock, concealed stopcock, sinkcock, round shower, wall mixer, inlet connection, and pillarcock, were bathroom fittings and not sanitary wares.

2. Commissioner's Determination and Tribunal's Decision:
The Commissioner of Sales Tax determined that the items fell under entry No. 49 of Schedule C, Part II, which covers sanitary ware and fittings thereof. The assessee appealed to the Maharashtra Sales Tax Tribunal, arguing that the items were not fittings of sanitary ware. The Tribunal held that all disputed items were indeed fittings of sanitary ware under entry No. 49.

3. Interpretation of Entry No. 49:
Entry No. 49 of Schedule C, Part II includes "sanitary ware of all kinds and fittings thereof." The exclusion clause does not apply to the items in question. The critical issue is to determine the meaning of "sanitary ware" and its fittings.

4. Judicial Analysis:
The High Court analyzed the definition of "sanitary ware" in common parlance and trade. It noted that the dictionary meaning and commercial understanding of sanitary ware encompass plumbing articles like sinks, baths, lavatories, showers, and toilet bowls. The court emphasized that the term "sanitary ware" includes goods made for use in toilets.

5. Common and Trade Parlance Test:
The court considered the predominant use of the items in question and their availability in shops dealing with sanitary ware. It highlighted that these items are commonly known as sanitary ware in both consumer and merchant circles. The court emphasized that the items being used for other purposes does not negate their classification as sanitary ware.

6. Final Decision:
After thorough analysis, the High Court concluded that the disputed items, including stopcock, bibcock, concealed stopcock, sinkcock, round shower, wall mixer, inlet connection, and pillarcock, are indeed sanitary ware and fittings thereof falling under entry No. 49 of Schedule C, Part II. Consequently, the court answered the reference question in favor of the Revenue.

In conclusion, the High Court's judgment affirms that the items in question are correctly classified as sanitary ware and fittings thereof under the relevant tax entry.