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2023 (10) TMI 5 - SC - VAT and Sales TaxClassification of goods - installation cables, outlet or connection modules, patch cords, patch panels, network cards, fibre optic cables etc. - covered in Entry C. 20 (ii)(b) of the Second Schedule to the Karnataka Sales Tax Act, 1957 or not - HELD THAT - Reliance placed in the case of Collector of Central Excise v. Grasim Industries 2005 (4) TMI 64 - SUPREME COURT and Castrol India Ltd. v. C.C.E. 2005 (2) TMI 847 - SUPREME COURT , which had ruled that the phrase that is to say are to be given a restrictive meaning, rather than expanding the scope of the preceding words. In Castrol India, it was held the expression that is to say in sub-heading 2710.60 has to be interpreted to be words of limitation. The fact that sub-heading 2710.60 contains an exclusion clause goes to show that there may be other lubricating oils which may fall in the residuary heading others . Having regard to these facts, the Court is satisfied that the final decision classifying all the items in question, as falling in Part E of the Second Schedule to the Karnataka Sales Tax Act, 1957 is correct. Appeal dismissed.
Issues involved: Interpretation of Entry C. 20 (ii)(b) of the Second Schedule to the Karnataka Sales Tax Act, 1957.
The Supreme Court, comprising HON'BLE MR. JUSTICE S. RAVINDRA BHAT AND HON'BLE MR. JUSTICE ARAVIND KUMAR, granted leave in the listed special leave petitions. The Court upheld the impugned judgment which determined that certain items like installation cables, outlet or connection modules, patch cords, patch panels, network cards, fibre optic cables, etc., are not covered under Entry C. 20 (ii)(b) of the Karnataka Sales Tax Act, 1957. This decision was in line with the principles established in previous cases such as Collector of Central Excise v. Grasim Industries and Castrol India Ltd. v. C.C.E., emphasizing that the phrase "that is to say" should be given a restrictive meaning rather than expanding the scope of preceding words. The Court referred to legal principles from Stroud's Judicial Dictionary to explain the significance of the phrase "that is to say" in interpreting sub-heading 2710.60. It was highlighted that this expression serves to clarify and fix the meaning of what is being explained or defined, and should be viewed as words of limitation. The presence of an exclusion clause in sub-heading 2710.60 indicated the possibility of other lubricating oils falling under the residuary heading "others." Based on these considerations, the Court concluded that classifying the items in question under Part 'E' of the Second Schedule to the Karnataka Sales Tax Act, 1957 was the correct decision. In conclusion, the appeals were dismissed, and any pending applications were deemed disposed of by the Court.
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