1976 (6) TMI 66

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..... t") and carries on business in polythene bags and other plastic goods. The assessee has calculated his tax liability at the rate of five per cent of the turnover. The Sales Tax Officer demanded tax at the rate of seven per cent. 3.. The assessee challenged the extra liability by preferring an appeal before the Assistant Commissioner on the footing that polythene bags were not covered by the notification for higher rate of tax and were liable at the general rate. The appeal having been dismissed, the assessee preferred a second appeal to the Tribunal. Before the Tribunal, it was contended on behalf of the assessee that under the provisions of section 5(1) of the Act, the tax payable is at the rate of five per cent of the taxable turnover. .....

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..... served: "Admittedly, both plastics and nylon are synthetic products. To the scientist engaged in experiments in his laboratory, plastic and nylon would very often appear to be essentially one product. Plastic by its very quality of being pliable would admit of various combinations. Nylon as a synthetic material would also admit of composition. It would not, however, be appropriate to carry the idea of the scientist into the words for getting their true meaning. In the commercial field, plastic and nylon have definite connotations and on account of the fact that they are alike products or are drawn from essentially the same class of articles, there is no overlapping in the understanding of the words. Plastic articles convey a sense of hard .....

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..... clopedia Americana, Vol. XXII (1961 Edition), shows that polythene is a chemical product made basically out of plastic. Ordinarily, plastic bags are sold in the market. The manufacturers by making various chemical compositions make different commodities with a view to capturing the market. Plastic, as already stated, is a pliable commodity and with admixtures is available for manufacture of different goods. Polythene bags appear to be a commodity of that type. Essentially, therefore, polythene material comes under the broad head of plastic and, when the description of goods in the notification is "goods made of similar substance", the words are wide enough to take similar products. In our view, therefore, polythene came within the notificat .....

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