M/S EUREKA FORBES LIMITED vs STATE OF BIHAR

The Supreme Court examined whether a vacuum cleaner falls under Entry 81 of the Notification dated 26.12.1977 issued under Section 12 of the relevant Act. The Court held that the term 'electrical goods' in Entry 81 is inclusive, allowing for the imposition of a higher sales tax rate of 12% on vacuum cleaners, which are not specifically excluded from this category. The Court affirmed that the subsequent Notification from 2000, which explicitly mentions vacuum cleaners, supports the interpretation that they are taxable at the higher rate, thus ruling in favor of the State's position.