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2014 (4) TMI 65 - SUPREME COURTRate of tax – “types of glass” versus “forms of glass” - Exemption Notification – Eligibility to fall under Notification - Interpretation - Whether the notification would at all be applicable to the sale of product in question - construction of “types of glass and glass-sheets” under notification – u/s 8(5)(b) of the Act – Held that:- It could not be agreed that a notification which grants tax incentives should to be liberally construed - At the outset a strict approach ought to be adopted in administering whether a dealer/ manufacturer is covered by notification at all and if the dealer/manufacturer falls within it, then the provisions of the notification be liberally construed - Relying on Union of India v. Wood Papers Ltd., [1990 (4) TMI 55 - SUPREME COURT OF INDIA] It was observed that construction of an exemption notification or an exemption clause in contrast with the charging provision has to be tested on different touchstone and held that the eligibility clause in relation to an exemption notification is given strict meaning and the notification has to be interpreted in terms of its language, however, once an assessee satisfies the eligibility clause, the exemption clause therein may be construed literally. Relying upon M/s GAMMON INDIA LTD. Versus COMMISSIONER OF CUSTOMS, MUMBAI [2011 (7) TMI 17 - SUPREME COURT OF INDIA] SC while rejecting the plea of the appellant that the exemption notification should receive a liberal construction to further the object underlying it relied upon NOVOPAN INDIA LTD. Versus COLLECTOR OF C. EX. AND CUSTOMS, HYDERABAD [1994 (9) TMI 67 - SUPREME COURT OF INDIA] -The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee, assuming that the said principle is good and sound—does not apply to the construction of an exception or an exempting provision; they have to be construed strictly - A person invoking an exception or an exemption provision to relieve him of the tax liability must establish clearly that he is covered by the said provision. In case of doubt or ambiguity, benefit of it must go to the State - This is for the reason explained in Mangalore Chemicals and other decisions viz. each such exception/exemption increases the tax burden on other members of the community correspondingly. Once, of course, the provision is found applicable to him, full effect must be given to it - Constitution Bench in Hansraj Gordhandas v. CCE and Customs [1968 (9) TMI 112 - SUPREME COURT OF INDIA] held such a notification has to be interpreted in the light of the words employed by it and not on any other basis - In a taxing statute, there is no room for any intendment, that regard must be had to the clear meaning of the words and that the matter should be governed wholly by the language of the notification i.e. by the plain terms of the exemption. Whether the notification would at all be applicable to the sale of product in question – Held That:- The State Government has issued a notification and has used the expression “types of glass” and not the expression “forms of glass” - Thus, what requires to be examined is whether the two terms would be identical in their connotation and import - In taxing statutes the terms and expressions must be seen in their common and popular parlance and not be attributed their scientific or technical meanings - In common parlance, the two words “type” and “form” are not of the same import – Glassware is a form of glass and it is contended by the assessee that forms of glass are also covered by the said notification - The term glassware would generally encompass ornaments, objects and articles made from glass. The New Oxford Dictionary, the Merriam-Webster Dictionary and the Macmillian Dictionary refer to the said general meaning while defining it - Glassware would include crockery such as drinking vessels (drinkware) and tableware and general glass items such as vases, pots, etc. - Thus, it cannot be accepted that the expression “types of glass” could have been intended to refer to or include “forms of glass”. The glassware so manufactured by the assessee, though made of glass cannot be considered or called as a “type of glass” and since the notification only provides for the reduction in the rate of tax of types of glass and not for “forms of glass” which is manufactured by the respondent as glassware, the respondent would not be covered by the notification – It is held that the assessee is not entitled to derive the benefit of the notification dated 25.06.2001 - Judgment and order passed by the High Court set aside and appeal allowed – Decided in favour of Revenue.
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