Relief for Pidilite: Madhya Pradesh HC Classifies Steel Grip Insulating Tape as ‘Insulator’, Taxable at 5%

The Madhya Pradesh High Court has provided "relief for Pidilite," ruling that "Steel-Grip insulating tape" should be "classified as an insulator, taxable at 5%." This decision resolves a long-standing classification dispute, where the revenue department had argued for a higher tax rate of 12%. The court's detailed analysis of the product's function and composition, combined with a review of relevant legal precedents, led it to conclude that the tape’s primary use is as an insulator, not a general-purpose adhesive tape. This ruling sets a precedent for similar products, providing clarity and a favorable tax rate for manufacturers and consumers.