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TMI Blog1965 (12) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, hereinafter referred to as the Rules. The facts are not in dispute and they may be briefly stated. The respondent, Messrs. Swasthik Tobacco Factory, is a dealer in tobacco. It purchased raw tobacco; by processing it in a prescribed manner, converted it into chewing tobacco and sold it as such in small paper packets. The said process has been described by a Division Bench of the Madras High Court in Bell Mark Tobacco Co. v. Government of Madras [1961] 12 S.T.C. 126, 132. thus: "Taking, however, the cumulative effect of the various processes to which the assessee subjected the tobacco before he sold it, it is clear that what was eventually sold by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the matter in two revisions to the High Court of Madras. A Division Bench of the said High Court agreed with the view expressed by the Tribunal and dismissed the revisions. Hence the present appeals. Mr. A.V. Rangam, learned counsel for the State, argued that the raw tobacco was converted by a manufacturing process into chewing tobacco, a different commodity and that, therefore, under rule 5(1) of the Rules, as excise duty was paid only in respect of the raw tobacco and not chewing tobacco, the said duty was not deductible from the turnover of the assessee. He did not contest the correctness of the decision of the High Court on the question of the taxability of the chewing tobacco under section 5(vii) of the Act. Mr. T.A. Ramachandran, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " made all the difference. The words "in respect of", it was said, meant "attributable" and, therefore, the argument proceeded, the excise duty paid on the tobacco, though it was not paid on the goods sold by the respondent, was attributable to the said goods sold. The object of the concession is presumably to avoid payment of tax on tax in respect of the same goods. If excise duty was paid by a dealer on certain goods, it would be deducted from the gross turn- over of the dealer in regard to the said goods, as otherwise, in effect, sales tax would have to be paid on the amount paid towards excise duty. This concession could have no relevance if the goods subjected to excise duty were different from the goods sold. Raw tobacco, when con- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioners of Income Tax [1962] 3 All E.R. 294. observed that the said words could mean no more than "consisting of" or "namely". It is not necessary to refer to other decisions. It may be accepted that the said expression received a wide interpretation, having regard to the object of the provisions and the setting in which the said words appeared. On the other hand, Indian tax laws use the expression "in respect of" as synonymous with the expression "on": see Article 288 of the Constitution of India; section 3 of the Indian Income-tax Act, 1922; sections 3(2) and 3(5), second proviso, of the Madras General Sales Tax Act, 1939; section 3(1A) of the Central Excises and Salt Act, 1944; and section 9 of the Kerala Sales Tax Act. We should not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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