The judgment of the Court was delivered by

KANIA, J. - This is a reference under section 61(1) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the said Act"). The reference has been made at the instance of the Commissioner of Sales Tax, and the question referred to us for our determination is as follows :

"Whether, on a true and proper interpretation of entry 19A of Schedule E of the Bombay Sales Tax Act, 1959, the Tribunal was correct in law in holding that 'polynite sheets' manufactured and sold by the respondents are not goods made primarily from plastics falling under the said entry ?"

The facts giving rise to this reference are as follows : The respondents are a public limited company and manufacture products known in the trade as "styron" (plastic moulding powder) and polynite sheets. On 21st September, 1967, the respondents filed two applications under section 52 of the said Act before the applicant requesting him to determine the rate of tax applicable to the sales of the aforesaid two products, viz., styron and polynite sheets. The respondents contended that these articles were not chargeable at the rates prescribed under entry 19A of Schedule E but were chargeable under the residuary entry, viz., entry 22 of Schedule E to the said Act. The applicant, the Commissioner of Sales Tax, by his order held that both these articles were goods made from plastics and were taxable under entry 19A of Schedule E to the said Act. The respondents preferred and appeal against this order to the Sales Tax Tribunal. The Tribunal came to the conclusion that both the aforesaid products were plastics and not goods made from plastics and, in view of this, the Tribunal held that these goods were not covered by entry 19A of Schedule E but would fall within the residuary entry 22 of the said schedule. The department has accepted the view of the Tribunal regarding the product, styron, which consists of granules, but has sought to dispute the correctness of the view of the Tribunal regarding the polynite sheets by way of the question raised before us.

Before going into the arguments canvassed in the matter, it may not be out of place to take notice of the relevant entries in Schedule E to the said Act. Entry 19A of Schedule E, as it stood at the relevant time, read thus :

"Goods made primarily from any kind of plastics (other than those to which entry 53 in Schedule C or any other entry in that or any other schedule applies, but including roofing, floor, or wall plastic tiles)."

Entry 22 of the Schedule E is a residuary entry. It is common ground that, in the present case, if the goods in question cannot be regarded as goods made primarily from any kind of plastics, then the same would be covered by entry 22 of Schedule E, it again being common ground that neither entry 53 in Schedule C nor any other entry is applicable to these goods.

In order to appreciate the arguments advanced in the matter, it is necessary to examine the nature of the product involved and the manner in which it is manufactured. In its judgment, the Tribunal has considered what the substance known as "plastics" is. Reference has bene made by the Tribunal to the definition of the term "plastics" given in the Chambers's Twentieth Century Dictionary (Revised Edition, Reprinted, 1966). The relevant portion of the meaning of the said term "plastics" given in the aforesaid dictionary reads as follows :

"Generic name for certain natural and synthetic substances which under heat and pressure become plastic, i.e., mouldable, and can then be shaped or cast."

The judgment of the tribunal shows that polystyrene is one of the oldest synthetic resins. The Tribunal has taken note of the process for obtaining styron and polynite sheets. It has pointed out that styrene is the basic chemical to which are added ethyl benzene and mineral oil. To produce higher impact strength, rubber and ionol are also added. It is not necessary to describe in detail here the process inv