STATE OF GUJARAT Vs. PRAKASH TRADING COMPANY

JUDGEMENT

(1.) THIS appeal by special leave is directed against the judgment of Gujarat High Court in a reference made to it under S. 61 of the Bombay ST Act, 1959 (Bombay Act 51 of 1959) as amended by the Bombay ST (Gujarat Amendment) Act, 1962 (Gujarat Act 25 of 1962) (hereinafter referred to as the Act).

(2.) THE respondent made an application under S. 52 of the Act to the Dy. CST for determination of the rate of tax payable on sale of five articles, including Palmolive shampoo (large size), Colgate tooth paste, giant size and Colgate tooth brush for adult use. It was urged by the respondent, before the Dy. CST that Palmolive shampoo was a kind of liquid soap and was covered by entry 28 of Sch. C to the Act. As regards Colgate dental paste and Colgate tooth brush, the respondent submitted that those were articles meant for cleaning teeth and were not toilet articles. These contentions were repelled by the Dy. CST, who held that the aforesaid three articles were toilet articles within the meaning of entry 21A of schedule E to the Act and liable to tax accordingly. The Gujarat Sales Tax Tribunal on appeal took the same view as had been taken by the Dy. CST. On application filed by the respondent, the following two questions were referred by the Tribunal to

(3.) WE may at this stage refer to three entries with which we are concerned. Entry 28 of Sch. C to the Act pertains to soaps. Entry 21A of Sch. E to the Act deals with the following goods :