TMI Blog1991 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is covered by the expression 'dyes and chemicals' used in entry 9 in Schedule II, Part A, to the Gujarat Sales Tax Act, 1969 or whether the sales thereof were rightly held to have been taxed under the residuary entry 13 in Schedule III to the said Act by the learned Assistant Commissioner of Sales Tax?" A few facts giving rise to the present reference need be stated. The opponent is a registered dealer and it carries on the business of reselling chemicals, provisions, etc. It purchased and sold yeast in the form of dry powder and granules to the extent of Rs. 26,332 during the period from 1st January, 1974 to 31st December, 1974. A question arose before the Sales Tax Officer as regards the rate of tax payable on the sale of the said ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the description of biological product, while deciding the question as to whether a product would fall within a specific entry or not we shall have to keep in mind the cardinal principle of interpretation of entries in the fiscal statute, viz., that if a product falls within a specific entry, resort to the residuary entry should not be made. With this preface, it will be necessary to refer to entry 9 of Schedule II, Part A as it stood at the relevant time and entry 13 of Schedule III to the said Act. The said entries are reproduced hereunder: ---------------------------------------------------------------------------- Description of goods Rate of sales Rate of purchase tax tax -------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of carbohydrate into alcohol and carbondioxide. There is no dispute about the fact that yeast is capable of bringing about a chemical reaction or chemical effect. Having thus ascertained the composition of yeast and its basic characteristic of processing reactive properties, we shall now find out the meaning of the word "chemical" used in Oxford English Dictionary, Volume II, Page 319. As an adjective "chemical" is defined as "of, pertaining to or relating to the science of chemistry, or to the substance and phenomena of which it treats", and as noun the word "chemical" is defined in the said dictionary as "a substance obtained or used in chemical operations". Webster's Seventh New Collegiate Dictionary defines "chemical" as a noun to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Division Bench of this Court observed as under: "We are therefore not inclined to accede to this contention of the Revenue for the simple reason that in the first instance, the word 'chemicals' should not by any stretch of imagination in this particular entry be said to take a limited meaning from the preceding word 'dye-stuff'. It should be noted that this particular entry No. 4, namely, dyes and chemicals other than those mentioned in other entries of Schedule C or of those in other Schedules is a residuary entry as far as the dye-stuff and chemicals are concerned. It takes in its purview all types of dyes and chemicals which are not specifically mentioned in other entries of Schedule C or in any other entries of any Schedules." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... living micro-organisms or any biological product and, by this reference, we are not called upon to decide as to whether yeast would more appropriately fall into the description of biological product or not, secondly while construing an entry in fiscal statute we shall have to keep in mind the fact that when there is a specific entry in the description of which entry the product in question can more appropriately fall, it is not permissible to have resort to a residuary entry, thirdly, we have also reached a finding that by its composition yeast can be described as chemical, fourthly we have found that yeast is a substance having reactive properties and lastly we note that we are called upon to decide as to whether yeast is "chemical" and no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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