1995 (2) TMI 400 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of Schedule entries under the Bombay Sales Tax Act, 1959 regarding the classification of 'aloe twine' and determination of whether it falls under entry No. 25 of Part I of Schedule C or residuary entry No. 102 of Part II of Schedule C.

The judgment by the High Court of Bombay involved a dispute regarding the classification of 'aloe twine' under the Bombay Sales Tax Act, 1959. The assessee contended that aloe twine should be considered as jute twine falling under entry 25 of Part I of Schedule C. The Sales Tax Officer and Assistant Commissioner disagreed, stating that aloe twine, not being made of jute, did not qualify under the said entry. The Maharashtra Sales Tax Tribunal, considering certificates from manufacturers and commercial parlance, ruled in favor of the assessee, equating aloe twine to jute twine under entry 25. The Revenue challenged this decision, arguing that aloe twine, made from a different fiber, should not be classified as jute twine under the specific entry. The High Court analyzed the definitions of jute and aloe, emphasizing the botanical distinctions between the two fibers. It concluded that aloe twine, despite similarities in appearance and use, did not meet the criteria of jute twine under entry 25, which specifically refers to twine made from jute. The Court held that aloe twine could not be considered jute twine and thus did not fall under the mentioned entry. The judgment answered the reference question in the negative, supporting the Revenue's position and making no order as to costs.