WAVIN INDIA LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE short question that arises for our consideration, though short is undoubtedly interesting, is what exactly is the meaning of the words in entry 136 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 which entry reads as "P.V.C. conduit pipes and fitting" as it stood prior to January 1, 1985. We state so because we are concerned with the assessment year 1976-77 in this tax case. THE revision petitioners reported a total and taxable turnover of Rs. 1, 69, 30, 043.15 and Rs. 58, 40, 175.82 for the assessment year 1976-77. For the said assessment year, the assessing officer determined the total and taxable turnover at Rs. 72, 19, 736 and Rs. 63, 80, 087. In appeal there was a remand of the assessment but a confirmation of the rate of tax on Rs. 51, 48, 084. THE same was directed to be assessed under serial No. 136 of the First Schedule at 9 per cent as against multi-point tax collected under section 3(1) of the Tamil Nadu General Sales Tax Act, hereinafter referred to as "the Act". It was the contention of the petitioners that PVC water pipes conforming to IS. 4985 cannot be equated to conduit pipes confirming to IS 2509 since they were technically and commercially two different goods altogether. Before the Tribunal it was submitted that in the contracts, price lists, invoices and correspondence, PVC water pipes were never described as PVC conduit pipes. THEy were different goods having different properties and specifications as evidenced by Indian Standards Institution classification. THE user of the goods was different. In fact, the entire trade comprised of other manufacturers as well as dealers were collecting multi-point tax under section 3(1) of the Act and it was only in the case of the petitioners single point tax was applied. Though the Tribunal on a factual finding came to the conclusion that there was difference between the two goods, relying on the dictionary meaning of the expression "conduit" and "pipes", came to the conclusion that PVC water pipes will fall under serial No. 136 since it is comprehensive in its nature as "PVC conduit pipes". It is against this order of the Tribunal the present revision has come to be preferred.Mr. C. Natarajan, learned counsel for the revision petitioners, after placing before us several materials to show the differentiation between the two goods, would urge on the strength of the decision reported in Collector of Central Excise v. Krishna Carbon Paper Co. 1988 AIR(SC) 2223, 1988 (S3) SCR 12, 1989 (1) SCC 150, 1988 (4) JT 762, 1988 (2) SCALE 880, 1989 (20) ECR 273, 1989 (72) STC 280, 1988 (2) Scale 880, 1988 (37) ELT 480, 1989 (19) ECC 32, 1989 UPTC 188, 1989 SCC(Tax) 42 (SC) 1988 AIR(SC) 2223, 1988 (S3) SCR 12, 1989 (1) SCC 150, 1988 (4) JT 762, 1988 (2) SCALE 880, 1989 (20) ECR 273, 1989 (72) STC 280, 1988 (2) Scale 880, 1988 (37) ELT 480, 1989 (19) ECC 32, 1989 UPTC 188, 1989 SCC(Tax) 42 as well as Commissioner of Sales Tax v. S. N. Brothers 1973 (2) CTR 94, 1973 AIR(SC) 78, 1973 (31) STC 302, 1973 (3) SCC 496, 1973 (2) SCR 852, 1973 (2) CTR(SC) 94, 1951 CLR 122, 1973 SCC(Tax) 254, 1985 Supp(SCC) 392, 1973 (2) CTR 94 (SC), that the dictionary meaning is a delusive guide. THErefore, disregardful of the nature of the property in the goods as well as the specifications including as to how commercially the goods are treated, one cannot rely on purely the dictionary meaning. From this point of view the order of the Tribunal is liable to be set aside. Further, if technically the method of production and the nature of the goods differ, one cannot bring in the same under serial No. 136. In opposition to this the learned Government Pleader for Commercial Taxes would adopt the reasoning of the Tribunal which has gone through carefully the various materials placed before it and commend us acceptance of those reasonings. THErefore no interference is warranted. It cannot be said as an axiom that dictionary meaning should never be taken into consideration at all. Conduit pipes would be for conveyance and therefore, where it is for the purpose of electrical installation or for taking water, conduit pipes being comprehensive enough, would fall under serial No. 136. In order to appreciate the respective contentions, it is necessary on our part to find out the specifications prescribed by the Indian Standards Institution. Specification for rigid non-metallic conduits for electrical installations 2.2. In the Wavin electrical conduits, it is referred to as follows :

(2.) LIGHT weight

(3.) RIGIDITY