1996 (3) TMI 501 - AT - VAT and Sales Tax

Summary

Issues:
1. Interpretation of whether the goods fall under entry No. 51 or entry No. 78 of Part A of Schedule IV to the West Bengal Sales Tax Act, 1994.
2. Application of the principle of ejusdem generis.
3. Determination of the predominant use of the disputed item.
4. Consideration of trade parlance in interpreting the statute.

Analysis:
1. The case revolves around the interpretation of whether the goods in question fall under entry No. 51 or entry No. 78 of Part A of Schedule IV to the West Bengal Sales Tax Act, 1994. The applicants argue that the goods, Corial Lacquer FM, do not fall under item 51 as claimed by the respondents. They contend that the item is used only in the leather industry and should not be classified as a lacquer under entry 51. The respondents, on the other hand, assert that the item falls under item 51 and/or entry No. 78 of Schedule IV.

2. The principle of ejusdem generis is invoked by the applicants to argue that the item should not be considered a lacquer specified in entry 51. They rely on the decision in Siddeshwari Cotton Mills (P.) Ltd. v. Union of India [1989] 75 STC 75 (SC) to support their contention.

3. The predominant use of the disputed item, Corial Lacquer FM, is a point of contention. The applicants claim that the item is primarily used as a chemical in the leather industry and does not come under either item 51 or entry 78 of Schedule IV. This assertion is supported by a certificate obtained from the Leather Chemicals Manufacturers Association.

4. The trade parlance and understanding of the disputed item are crucial in interpreting the statute. The tribunal determines that regardless of the end-use, goods known as lacquer, as specified in entry No. 51 of Part A of Schedule IV, will be covered by that entry. The tribunal concludes that the seizures made on September 23, 1995, and September 25, 1995, were valid, dismissing the application without costs and vacating the interim order.

This detailed analysis of the judgment highlights the key legal arguments and considerations made by both parties, ultimately leading to the tribunal's decision regarding the classification of the disputed goods under the relevant entry of the West Bengal Sales Tax Act, 1994.