COMMISSIONER OF SALES TAX Vs. SUBHASH STORES
HIGH COURT OF MADHYA PRADESH
COMMISSIONER OF SALES TAX
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(1.) AT the instance of the Commissioner of Sales Tax, M P. , the Sales Tax Tribunal (Board of Revenue, M P.) has referred the following question for our decision: 'whether safety razor blades are cosmetic and therefore, their sale will be taxable under Entry 31 of Schedule II, Part II of the M. P. General sales Tax Act?"
(2.) FOR the assessment period 1st April 1962 to 31st March 1963 the assessee was taxed on the sale of safety razor blades worth about Rs. 12,000 at the rate of 7 per cent under Entry 31 of Schedule II, Part II, of the M. P. General Sales Tax Act by the Sales Tax Authorities. The contention of the assessee was that the safety razor blades could be taxed under Entry 1 of Schedule II, Part VI, at 4 per cent only. This contention was accepted by the Sales Tax Tribunal on the ground that the safety razor blades were not included under Entry 31 of Schedule II, Part II. As interpretation of Entry 31 was involved, the Sales Tax Tribunal has referred the abovesaid question for our decision.
(3.) ENTRY 31 of Schedule II Part II of the Act reads as under
"perfumery, cosmetic and all toilet articles including toilet soaps, toothpaste including manjan combs, brushes, perfumed hair oils etc " the Sales Tax Authorities held that the safety razor blades came within the expression "cosmetic" as according to them, they are used for beautifying the face. The Sales Tax Tribunal, however held that 'persons undergo a shave not to beautify themselves but to avoid the ugliness which an unshaven face is taken to present'. It also held that razor blades could not fall under the category of "toilet articles". It was held that when such articles as toilet soaps, toothpaste including manjan, combs, brushes, perfumed hair oils were mentioned in the entry, if the razor blades were treated as 'toilet articles', they would have also been mentioned. The Sales Tax Tribunal followed the decision of the Madras High Court in Deputy Commissioner of Commercial Taxes v. Ambika Stores, 1963-14 STC 688 (Mad) where it was held that hair-pins were not toilet requisites. On this analogy it was held that razor blades also could not come within the description of "cosmetic" or "toilet articles. " On this reasoning it was held that the razor blades could be taxed only under the general Entry No. 1 of Schedule II of Part VI, and not under the special entry No. 31" of Schedule II, Part II, of the Act.;
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