SALOT BROTHERS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE appellant, a registered dealer under the Karnataka Sales Tax Act, 1957, (Act for short) filed an application under Section 4 of the Act, before the Authority for Clarification and Advance Rulings in regard to the rate of tax payable on the following commodities:-Hair pin, Hair bands (elastic), Hair bands (plastic) and Hair clips (plastic)The authority, following the decision of the Supreme Court in STATE OF GUJARAT vs. PRAKASH TRADING COMPANY [ (1972) 30 STC 348], the decision of the Allahabad High Court in NAVARANG PLASTIC vs. STATE OF MAHARASTRA [ (1975 35 STC 510] has passed an order dated 8-10-2002 holding that the said items are toilet Articles fall under Entry 10 (ii) of Part T of Second Schedule to the Act and the tax applicable is 20%

(2.) FEELING aggrieved, the appellant has filed this appeal, urging two contentions: (i) As Toilet Articles enumerated in Entry 10 (ii) start with the words that is to say the Entry is exhaustive and not illustrative and only those goods specified in the said entry will fall under the said entry. As Hair Pins, Hair Bands and Hair Clips are not mentioned in the said entry, they will not fall under the entry 10 of part T of Second Schedule. (ii) The goods in question cannot be considered as Toilet Articles, at all as understood in common parlance and therefore they will not fall under Entry 10 (ii) of Part T of Second Schedule. Re: Contention (i):

(3.) ENTRY 10 of part of second schedule, which is relevant, contains two parts and it is extracted below: 10. Toilet articles (whether medicated or not) that is to say, (i) perfumes, eau-de-cologne, solid colognes, beauty boxes, face packs, cleansing liquids, moisturizers, make-up articles (not including talcum powder ). Complexion rouge, bleaching agents, hair dyes, hair sprayers, hair removers, hairs removers, hair creams, lipsticks, nail polishers and varnishers, polish removers, eye liners after shave lotion and body deodorants. (ii) Toilet articles other than those specified at (i) above, and such other toilet articles as may be specified by the State Government by notification in the Official Gazette. The first part of Entry 10, i. e. , clause (i) refers to specific items Clause (ii) refers to all toilet articles other than those specified in clause (i ). Therefore, it is untenable to contend that unless the articles are specified, they will not fall under Entry 10. It is evident that all toilet articles will fall under and are covered by Entry 10. While those enumerated in clause (i) will fall under that clause, all remaining toilet Articles will fall under clause (ii ). The distinction was of some relevance when the rates of tax were different for those falling under clause (i) and those falling under clause (ii ). From 1-4-2001, as the rate of tax is the same for both, the distinction has lost its relevance. At present the rate of tax for all toilet articles, both specified and unspecified is 20%. Be that as it may. Re: Contention (ii):