- (1.) The present revision under section 11 of the U.P. Trade Tax Act, 1948 (hereinafter referred to as, "the Act") is directed against the order of the Tribunal dated August 25, 2003, for the assessment year 1998-99 under the U.P. Trade Tax Act. The applicant was the manufacturer of PP caps made of aluminum and iron. The aluminum caps are mainly used in the beer bottles and the iron caps are used in the cold drink bottles. According to the applicant, the iron caps are also known as crown cork. The case of the applicant is that such aluminum caps and iron caps are liable to tax at the point of sale by manufacturer or importer under the Notification No. 5785, dated September 7, 1981, which has been subsequently modified by Notification No. 2376, dated November 23, 1998 enhancing the rate of tax to five per cent with effect from December 1, 1998. The aforesaid notification has been further modified by Notification No. 101, dated January 15, 2000. However, the rate of tax on corks was remain five per cent. The case of the Department is that the aluminum caps and iron caps are not corks. They are not classified in any of the entries and, therefore, liable to tax at 10 per cent as an unclassified item.
(2.) The assessing authority levied the tax on aluminum caps and iron caps at 10 per cent as an unclassified items. This view of the assessing authority has been confirmed in the first appeal and in the second appeal also by the Tribunal. The Tribunal held that in common parlance, aluminum caps and iron caps are not known as corks. In the commercial word, on the demand of cork, the shopkeeper gives the item manufactured out of chhilka of cork tree, which are specifically found in South Europe and in North Africa. The Tribunal held that the dictionary meaning is not relevant for classification.
(3.) Heard Sri Piyush Agrawal, learned counsel for the applicant and Sri B. K. Pandey, learned standing counsel.;