1998 (10) TMI 452 - SUPREME COURT

Whether “toffee” is “sweetmeat” or a commodity of a like nature and therefore the appellant’s industrial units making toffees, though newly set-up, were not entitled to the benefit of exemption from payment of sales tax under notification dated July 27, 1991, issued by the State of Uttar Pradesh, in exercise of its powers under section 4-A of the Uttar Pradesh Sales Tax Act, 1948?

Held that:- Appeal allowed. High Court has not correctly interpreted and construed entry No. 18 of the notification. Considering the object of the notification and the intention of the State Government in granting exemption from payment of sales tax and applying the correct principles of interpretation in such cases, we hold that the word “sweetmeat” and the words “commodities of like nature” as used in the notification dated July 27, 1991 did not include within their sweep toffees manufactured by industrial units as contemplated by the notification and the Joint Director of Industries, the Tribunal and the High Court were wrong in taking a contrary view.