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Judgment
Y. Bhaskar Rao, J.-This is a revision petition filed by the assessee assailing the order of the Karnataka Appellate Tribunal.
The facts of the case are that the assessee filed his returns of turnover for the assessment years 1986-87 and 1987-88. The assessee is a partnership firm doing business in Marblex Vinyl Tiles, PVC wall covering, wall paper etc. The assessee contended that the Marblex Vinyl Tiles are covered by Entry 110 of the II Schedule to the Karnataka Sales Tax Act and therefore taxable at 10%. The Assessing Authority rejected the contention of the assessee holding that the said tiles fall in Entry 182 of the II Schedule to the Karnataka Sales Tax Act and therefore taxable at 15%. That order is challenged in the appeal, before the Appellate Tribunal. The Appellate Tribunal also confirmed the same. Assailing that the present revision petition is filed.
The learned Counsel for the petitioner contended that Entry 110 of the II Schedule to the Act says that all articles of plastics including articles made of polythene, PVC polypropylene, polystyrene and the like materials. Whereas Entry 182 says that levy of tax on floor, wall and roofing tiles of all makes irrespective of the material from which they are made if they are not covered by any other entry. Therefore the Marblex Vinyl Tiles are taxable only under Entry 110.
The learned Government Advocate contended that Entry 182 is a specific entry governing the tiles; whereas Entry 110 is a general entry covering plastic articles. Therefore, when the article falls under two entries, the specific entry must be taken to be governing classification of the article for taxing and not the general entry.
In view of the above contention, the question that arises for consideration is whether the tiles made of plastics are taxable under Entry 110 or 182 of the II Schedule to the Karnataka Sales Tax Act.
To appreciate the above contention, it is relevant to extract Entries 110 and 182 of the Karnataka Sales Tax Act.
"110. Plastic sheets and all articles made of plastic, polythene or polyvinyl chloride material".
"182. Floor, wall and roofing tiles not covered by any other entry".
The question now is about the interpretation of entries. Entry 110 categorically declares that plastic sheets and all articles made of plastic, polythene or polyvinyl chloride materials would fall within that entry. The Legislature has specifically covered all articles made of plastics which would necessarily include the articles made of laminated sheets and tiles of polythene, or polyvinyl chloride material would fall within the said entry. The Marblex Vinyl Tiles are one of the kinds of articles made up of plastic. While interpreting the entry full effect has to be given to the words of articles made of plastics. Therefore, the Marblex Vinyl Tiles made of plastic fall within the category of articles made of plastics and they are covered by Entry 110. Entry 182 are only floor material, wall and roofing tiles and not covered by any other entry. This entry specifically excludes any article covered by any other entry. Therefore, by reading Entries 110 and 182 together, it is manifest that when the plastic tiles are formed part of articles made of plastic, they are covered by Entry 110. In turn as they are covered by Entry 110, Entry 182 excludes them. Therefore, they are taxable as per the tax provided under Entry 110 of the II Schedule to the Act.
The learned Government Advocate relied upon the decision of the Division Bench of this Court in R.N. Dongare v State of Karnataka, 1990 Kar. L.J. (Tri. Supp.) 68 (HC). In that case a Division Bench of this Court while considering Entries 78 and 110 regarding the question whether the article taxable will fall within Entry 78 or 110 and held that as Entry 78 covers cement and asbestos sheets, strawboards, hardboards, plywood and the like and Entry 110 covers plastic sheets and all articles made of plastic, polythene or polyvinyl chloride material, by reading both the entries together, the article falls under both entries. Entry 78 is a general entry whereas Entry 110 is a specific entry. When an article falls under both the entries, specific entry overrides the general entry. Therefore, specific entry has to be given preference i.e., 110 and accordingly it was given. In that case, there was no words as in Entry 182 having provided any other entry and which in these circumstances, the Division Bench held a specific entry prevails than a general entry. The facts of that case are different from the facts of this case. In the present case as stated, considering the plastic tiles like Marblex Vinyl Tiles, PVC wall covering and wall paper etc., made out of plastic polythene or polyvinyl chloride material, fall within the category of all articles made out of plastic, they are governed by the tax provided under Entry 110 and not under Entry 182. Revision petition is accordingly allowed and the impugned order is set aside.