TMI Blog1957 (6) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... together, guaranteeing the price, and when the price is not paid on the spot, by advancing to the seller-growers, the whole or part of the sale price, taking upon themselves the responsibility of collecting the money due from the purchasers and for their labours the Aratdars or middle-men charge one pice per rupee on the sale proceeds as their remuneration. In April, 1951, a notice was issued upon the petitioner and several other pan agents under section 22(1)(a) of the Bengal Finance (Sales Tax) Act for non-registration of the petitioner firm. On the 29th August, 1951, a petition was presented by the Howrah Pan Commission Agents Association stating that pan being a vegetable within the meaning of item No. 6 in the schedule appended to the Bengal Finance (Sales Tax) Act was exempted from taxation and so the notice served should be discharged. On 27th September, 1951, the Commissioner however informed the President of the Association that the petition had been rejected. On 31st October, 1951, further notices were issued by the Commercial Tax Officer requiring the petitioner and other pan-agents to produce books of accounts and necessary documents for examination and informing them t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be sold to a particular bidder and at what price. The pan agents merely bring the seller-grower and the purchaser together and accept the responsibility of realising money from the purchasers, who from their long association, are usually intimately known to them. The petitioner has in the petition challenged the legality of the notices on the ground that pan is a vegetable within the meaning of item 6 and so exempt from taxation, and that the petitioner is not liable to taxation as he is not a dealer within the meaning of the section 2(c) of the Sales Tax Act. In the affidavit in opposition which has been filed on behalf of the opposite parties it has been stated in paragraph 3 that the petitioner is an Aratdar in the Howrah Pan Market and has a stall in the said market. The system which is followed for selling pan in the market is thus described in the said paragraph: "The system is that the producers of pan (chasis) come with their pan at the arat of the Aratdars in the market and place their goods at the respective arats. The purchasers of pan then contact the Aratdars and make bids which when accepted by Aratdars the sale is made by the Aratdars. The purchasers however d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jumdar, the learned Advocate for the opposite parties, does not object to this course being adopted and accordingly this question is left open for decision by appropriate authorities upon taking such evidence as may be necessary on the point. The only other point which has been agitated before this Court by Dr. Gupta is whether pan or betel leaf is a vegetable within the meaning of item No. 6 of the schedule appended to the Bengal Finance (Sales Tax) Act and as such exempt from taxation under the provisions of the said Act. Item No. 6 of the schedule to the Sales Tax Act is worded as follows: "Vegetables, green or dried, (except when sold in sealed containers)." Dr. Gupta has referred to the word "vegetable" as appearing in the Oxford English Dictionary, Vol. XII, page 73, for the different meanings of the word "vegetable" and particular reliance is placed on the meaning as given in paragraph 2 in the left hand column in that page. The said paragraph runs thus: "A plant cultivated for food; esp. an edible herb or root used for human consumption and commonly eaten either cooked or raw with meat or other article of food." Reference is also made to Vol. V of the Oxford English Dicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l forms of rice raw or cooked)-except when sold in sealed containers. 2.. Flour (including atta, suji and bran). 3.. Bread. 4.. Meat which has not been cured or frozen. 5.Fresh fish. 6.. Vegetables, green or dried-except when sold in sealed containers. 7.. Cooked foods, other than cakes, pastries and sweetmeatsexcept when sold in sealed containers. 8.. Gur, sugar and molasses". With reference to these items it is submitted by Mr. Majumdar that as all these items Nos. 1 to 8 are articles of food the meaning of the word "vegetable" should also be limited to such vegetables which are used for food. The learned Advocate has also drawn the attention of the court to the meaning of the word "vegetable" which has been given in Webster's Dictionary at page 1598, left hand column, paragraph 2 which is as follows: "A plant used or cultivated for food for man or domestic animals, as the cabbage, turnip, potato, bean, dandelion etc. also the edible part of such a plant, as prepared for market or the table." It may be noted that there is not any substantial or material difference between this definition as given in the Webster's Dictionary and the definition in the Oxford English Dictionary to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, green or dried other than medicinal preparations"-and the words "medicinal preparations" are absent from item 6 as appearing in the schedule to the Bengal Finance (Sales Tax) Act, the interpretation which was put by the Patna High Court on the word "vegetables" having regard to the collocation of items 1 to 8 in the said notification is equally applicable to items 1 to 8 as appearing in the schedule to the Bengal Finance (Sales Tax) Act. It is further clear from the said decision of the Patna High Court that the learned Judges had preferred to give a narrow and restricted meaning to the word "vegetable" instead of a very wide meaning which is attributed to the word in the various English Dictionaries. This decision of the Patna High Courts has been followed by the Nagpur and the Allahabad High Courts in the cases of Madhya Pradesh Pan Merchants Association, Santra Market, Nagpur v. State of Madhya Pradesh[1956] 7 S.T.C. 99, at p. 102. and Brahmanand v. The State of Uttar Pradesh and Another.[1956] 7 S.T.C. 206. In the case before the Nagpur High Court the learned Judge interpreted the term "vegetables" as appearing in item No. 6 of the second schedule to the C.P. and Berar Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut it is not necessary to set them out here over again. It may be pointed out however that the Bombay High Court in the case of State of Bombay v. R.S. Phadtare[1956] 7 S.T.C. 495; A.I.R. 1956 Bom. 596. has preferred to adopt the wider meaning given to the expression "vegetable" as used in the Bombay Sales Tax Act. Chagla, C.J., and Tendolkar, J., have held that "sugar-cane" is a commodity which comes within the word "vegetable" as used in the Act. The learned Judges in the course of their judgment made the following observation: "In its plain and natural meaning a 'vegetable' clearly is wide enough to cover a "sugar-cane'..........This is a taxing statute and if two constructions are possible we must lean in favour of that construction which gives relief to the subject." The learned Judges however felt that the matter was not free from doubt but in view of the fact that they had been called upon to interpret a taxing statute they decided to resolve the doubt in favour of the subject. Now although the Bombay High Court has in interpreting the relevant taxing statute given a wider meaning to the word "vegetable" so as to include "sugar-cane" within the meaning of that expression I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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