In Brief
This case involves a dispute over the correct sales tax rate applicable to roofing tiles manufactured by Raja Bricks & Tile Industries. The appellant claimed its products should be taxed at 5% under sub-entry (iii) of Entry 8, Part 'T' of the Karnataka Sales Tax Act, 1957. The tax authorities and High Court classified them as 'other tiles' under sub-entry (iv), subject to 15% tax. The Supreme Court held that since the tiles were genuinely roofing tiles—regardless of decorative variations—they fell squarely within sub-entry (iii). It rejected the High Court's reasoning that 'decorative' roofing tiles intended for different consumers fell outside the lower-taxed category as irrelevant to statutory classification. The appeals were allowed, and the lower rate of 5% was upheld."
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