1962 (12) TMI 51 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the Madhya Pradesh General Sales Tax Act, 1958 regarding the tax liability on sales of turmeric under Entry No. 44 of Schedule IV.

Analysis:
The reference under section 44(1) of the Madhya Pradesh General Sales Tax Act, 1958 was made to determine the tax liability on sales of turmeric. The question revolved around whether turmeric was included in Entry No. 44 of Schedule IV under Notification No. 37/VII/SR dated 15th March, 1955, or it was included later under Notification No. 10/VII/SR dated 21st January, 1956. The dispute arose from the assessment of tax on sales of kirana goods, including turmeric, for the period from 1st April, 1955, to 31st March, 1956. The Sales Tax Officer initially overruled the contention that turmeric was taxable only from 26th January, 1956, but the Commissioner of Sales Tax revised the decision. The Board of Revenue accepted the non-applicant's case, leading to the reference to the High Court.

Three relevant notifications under section 5 of the Madhya Bharat Sales Tax Act were considered. The Court analyzed the term "kirana" and its interpretation in a taxing statute. It was established that "kirana" encompasses goods commonly vended by a grocer, akin to groceries. The Court cited precedents emphasizing interpreting terms based on general usage and commercial understanding. The argument that turmeric should not be taxed before its specific mention in the statute was dismissed by the Court. It was held that if a taxing enactment clearly imposes a charge, specific mentions do not exclude other goods.

The Court interpreted Item 44 of Schedule IV, noting that the addition of the word "jaise" between "kirana" and specified goods indicated an illustrative, not exhaustive, list. The inclusion of "ityadi ityadi" further supported this interpretation. As turmeric falls within the meaning of "kirana," the Court concluded that sales of turmeric became taxable from 27th May, 1955. The judgment directed the non-applicant to bear the costs of the reference and answered the question accordingly.

In conclusion, the High Court determined that sales of turmeric became taxable under Item 44 with effect from 27th May, 1955, based on the interpretation of the Madhya Pradesh General Sales Tax Act, 1958 and relevant notifications under the Madhya Bharat Sales Tax Act.