In Civil Appeal No. 10704 of 2018 -SC- Supreme Court rules ‘Toughened Glass’ as 'All Goods and Wares Made of Glass' under U.P. Sales Tax Act
Justice S. Ravindra Bhat & Justice Aravind Kumar [11-07-2023]

Read Order: M/s. Gudex Glass Industries Pvt. Ltd. V. Commissioner Trade Tax, U.P.

Chahat Varma

New Delhi, August 9, 2023: The Supreme Court has upheld the decision of the Allahabad High Court and dismissed the appeals filed by M/s. Gudex Glass Industries Pvt. Ltd. (appellant), holding that the toughened glass manufactured and sold by the appellant fell within the description of Item No. 39 of the U.P. Sales Tax Act, 1998.

The central question in the case was whether the toughened glass manufactured and sold by the appellant should be classified as 'glass and glassware' or considered an unclassified item subject to lower tax rates.

Initially, the trade tax assessment officer classified the toughened glass as 'All goods and wares made of glass,' falling under Tariff Item No. 39 of the U.P. Sales Tax Act. However, the Appellate Authority and the Tribunal disagreed with this classification. The High Court then set aside the Tribunal's finding, basing its decision on a previous judgment in Trutuf Safety Glass Industries vs. Commissioner of Sales Tax, U.P. [LQ/SC/2007/972], wherein it was observed that the expression used in the entry is 'in all forms,' thereby providing an expansive description of ‘glass’ and ‘glasswares’.

The division bench of Justice S. Ravindra Bhat and Justice Aravind Kumar supported the High Court's interpretation, emphasizing that the nature and description of goods under Tariff Item No. 39 indicated what was covered and what was not. According to the bench, the toughened glass manufactured by the appellant clearly fell within the ambit of Item No. 39.