TMI Blog2014 (8) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... of 'Tyres' in clause (xiv) cannot lead to the inference that tractor tyres and tubes are also 'included'. The word 'Tyres' follows the word 'wheels' and is succeeded by the words 'axels and wheel sets'. The doctrine of 'ejusdem generis' provides that the word or words succeeding any word must partake of the same meaning or context or flavour as the word immediately proceeding it. So far as clause (a) of subsection 2 of Section 3-A is concerned Scheduled-II is specifically omitted therefrom which means that goods mentioned in Entry 125 of Scheduled-II will also be subject to levy of additional tax as goods "other than declared goods in view of Entry I to the Notification dated 31.3.2011 - from a composite analysis of the various statutory provisions as well as the Notification dated 31.3.2011 and Notification dated 7.9.2012 it is seen that the only Entry under which Tractor tyres and tubes can be subjected to additional tax is Entry 1 of the Notification dated 31.3.2011 and such additional tax will be paid at 1% and not 3% under Entry 5 - Decided in favour of assessee. - Trade Tax Revision No. - 48 of 2013, Trade Tax Revision No. - 49 of 2013, Trade Tax Revision No. - 50 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hedule II part A of the VAT Act specifically mentions tractors, tractors trolley, harvesters and attachment and parts thereof and provides the tax shall be payable at the rate of 4%. Entry No. 125 of Schedule II Part A of the VAT Act reads as follow:- 125. Tractors, tractor trolley, harvesters and attachment and parts thereof; tractor tyres and tubes. The rate of tax of tractor tyres and tubes is 4% in terms of Section 4 (1) (a) of the VAT Act. The case of the revisionist further is that in terms of Notification no.419 dated 31.3.2011 issued in exercise of the powers under Section 3-A of the VAT Act provision was made for levy of additional tax on different goods mentioned in the Notification. The rate of tax has been prescribed for different goods at 1%,5%,3%, 2%, 3%, 5% and 1%. The grievance of the revisionist is that although under the head 'Description of goods' in Entry no.5 tyres and tubes excluding tyres and tubes of cycles, cycle-rickshaw and animal driven vehicle the rate of tax is prescribed at 3%, however, in Entry no.1 for the goods described in Schedule II to the VAT Act 'other than declared goods' the rate of additional tax has been fixed at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include tractor tyre and tubes, the statute would have specifically said so without mincing words and, therefore, tractor tyres and tubes cannot be held to be declared goods by mere inference. The submission of learned Senior Counsel for the revisionsit further is that under Section 3-A of the U.P. VAT Act, 2008 an additional tax is payable on the taxable turnover of sale or purchase of goods or both at a rate not exceeding 5% as may be specified by the State Government by notification. He submits that under subsection (2) of Section 3-A, no additional tax shall be levied and paid on :- (a) The turnover of sale or purchase or both as the case may be, of goods specified in Column 2 of Schedule I and Schedule III; and (b) The turnover of sale or purchase or both as the case may be, of goods declared to be of special importance in the inter-State trade or commerce under Section 14 of the Central Sales Tax Act, 1956. Sri Sanjeev Shankhdhar, learned Additional Chief Standing Counsel, however, rebutting the submissions of the learned counsel for the revisionist submitted that this matter was already considered by the Tribunal and the Tribunal in para-23 had held that what is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows the word 'wheels' and is succeeded by the words 'axels and wheel sets'. The doctrine of 'ejusdem generis' provides that the word or words succeeding any word must partake of the same meaning or context or flavour as the word immediately proceeding it. In AIR 1955 SC 504, Thakur Amar Singhji and others vs. State of Rajasthan and others the Constitution Bench has held that the true scope of the 'ejusdem generis' is that words of a general nature following specific and particular words should be construed as limited to things which are of the same nature as those specified and not its reverse. In AIR 1955 SC 810, State of Bombay vs. Ali Gulshan para 8 the Supreme Court has held that 'ejusdem generis' rule of construction must be confined within narrow limits and general or comprehensive words should receive their full and natural meaning unless they are clearly restrictive in their intendment. It is requisite that there must be a distinct genus, which must comprise more than one species, before the rule can be applied. In AIR 1960 SC 1080, Kavalappara Kottarathil Kochuni @ Moopil Nayar and others vs. State of Madras and Kerala and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) the turnover of sale or purchase or both as the case may be, of goods declared to be of special importance in the inter-State trade or commerce under Section 14 of the Central Sales Tax Act, 1965; The word 'Wheels' in clause (xiv) of Section 14 cannot be interpreted to have any correlation to Tractors and, therefore, the word 'Tyres' also cannot consequently be interpreted to mean 'Tractor Tyres and Tubes'. In any view of the matter clause (xiv) does not include tubes which is an indicator that clause (xiv) does not include 'tractor tyres and tubes' and are not 'declared goods' and therefore, additional tax is payable on 'Tractor tyres and tubes' under clause (b) of subsection (2) of Section 3-A of the U.P.VAT Act. The word 'Tyres' must correlate to the preceding word 'Wheels' and the succeeding words Axels and Wheel Sets and in the absence of the word 'Tyres', the word 'Tyres' cannot be inferred to relate to Tractor Tyres and Tubes . So far as clause (a) of subsection 2 of Section 3-A is concerned Scheduled-II is specifically omitted therefrom which means that goods mentioned in Entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I quite agree that subsequent legislation if it proceeded on an erroneous construction of previous legislation cannot alter that previous legislation; but if there be any ambiguity in the earlier legislation, then the subsequent legislation may fix the proper interpretation which is to be put upon the earlier Act. It is an equally well settled rule of interpretation particularly in taxing statutes that when two views are possible, the one which favours the assessee should be adopted. In (2008) 12, VST 259 (SC), Mauri Yeast India Pvt. Ltd. vs. State of U.P. and another, in para 56 the Supreme Court has held that when two views are possible the one which favours the assessee should be adopted. Para 56 of the judgment reads as under:- 56. It is now a well-settled principle of law that when two views are possible, one which favours the assessee should be adopted.[See Bihar State Electricity Board v. Usha Martin Industries [1997] 5 SCC 289. In (1997) 6 SCC 564 Sun Export Corporation vs. Collector of Customs, the Supreme Court in para 13 thereof has held as under:- 13. We are in agreement with the above view expressed by the Bombay High Court. No doubt it was conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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