9911796707
TMI Blog2007 (4) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent purportedly under entry No. 91 of Notification, S.No. 713, S.O. No. 399 dated March 27, 1995 which entry reads as under: The Deputy Commissioner (Appeals), however, allowed the appeal of the assessee and held that the vulcanising solution is a rubber compound and is not a synthetic adhesive, therefore, 10 per cent sales tax charged under the general residuary entry No. 100 of notification dated March 27, 1995 by the respondent-assessee was appropriate and since the Tax Board in another case had already held it to be so taxable at general rate of 10 per cent, the appeal of the assessee was allowed by the learned Deputy Commissioner (Appeals). The Revenue took the matter further before the Tax Board but lost there also and the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood in the trade parlance by the persons concerned with that particular trade or business is the relevant factor. Relying on certain judgments of the apex court for this well-settled proposition of law of applying the common parlance test, he urged for allowing the revision petitions. Mr. Alok Sharma and Mr. R.C. Shah on the side opposite submitted in the first instance that the relevant entry No. 91 quoted above made it more than clear that even assuming for a moment that the vulcanising solution was a synthetic adhesive, though they reserved their right to argue otherwise, did not include the vulcanising solution used for retreading of tyres in the said entry and applying the rule of interpretation of ejusdem generis the vulcanising so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immediate connection with them. When two or more words which were capable of being understood in an analogous manner were coupled together, they had to be understood in the common analogous sense and not in the general sense. Applying this rule of noscitur a sociis, the word perfumes in the entry was to be understood in conjunction with cosmetics and depilatories . In other words, the word perfumes referred only to such preparations as were commonly known in the market for use on the human body as perfumes. Approving the said Bombay view, the honourable Supreme Court held that we are in no doubt whatever that the word 'perfumery' in the said entry No. 16 draws colour from the words 'cosmetics' and 'toilet goods&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions filed by the Revenue. That the commodity in question, vulcanising solution, is an adhesive is beyond the pale of doubt because it is used for sticking together two layers of rubbers in the tyre retreading industry of the respondent-assessee. The chemical composition of the vulcanising solution also indicates that they have the adhesive value in them. The rubber compound, polymers and solvent used along with natural rubber to make the vulcanising solution makes it a synthetic adhesive used for the purpose of sticking. But the question remains as to whether the same could be taxed at the rate of 16 per cent with reference to aforesaid entry No. 91 under notification dated March 27, 1995. A bare and close reading of the said entry No. 91 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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