TMI Blog1961 (8) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... nover of "choli" bits and saris, tax was levied at the rate of Re. 0-1-6 per rupee. The petitioner contended before the Deputy Commercial Tax Officer, Madurai Town, that the levy of tax at the rate of Re. 0-1-6 for silk choli bits and saris was not proper or in conformity with the provisions of the Madras General Sales Tax Act. This contention was however overruled by the taxing authority. The petitioner preferred an appeal against the levy of Re. 0-1-6 tax on the silk choli bits and saris to the Commercial Tax Officer, Madurai, but that was dismissed. There was a further appeal by the petitioner before the Sales Tax Appellate Tribunal, Madras, in Tax Appeal No. 828 of 1957. The Tribunal confirmed the decision of the taxing authorities. Hence this revision petition is filed by the petitioner. The only question that arises for determination in this revision petition is whether the assessee is liable to pay sales tax at the rate of Re. 0-1-6 per rupee which is an enhanced levy, the normal rate of taxation being only three pies in the rupee. It is necessary to know what are "choli" bits before going into the question whether they attract the special taxing provisions of the enactmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er shall pay a tax at the rate specified as applicable thereto; and the tax shall be paid by the dealer on his turnover in each year relating to such goods and shall be in addition to the tax to which he is liable under sub-section (1) on his total turnover for the year." Clause (i) of the description of the goods was in varying terms between the years 1954 and 1956 and we are now concerned only with the amendment introduced by Act III of 1956 which took effect retrospectively as and from 23rd August, 1954. The petitioner does not dispute that this 1956 amendment applies to his sales turnover for the year 1955-56. The description is in these terms: "(i) Cloth (other than cloth woven on handlooms whether of silk, artificial silk, wool, flax, or any other material) which is not made wholly of cotton-rate of tax on the turnover: eight per cent. (a) All hosiery goods other than those made wholly of cotton8 per cent. (ii) Cotton cloth (other than cloth woven on handlooms) which is either fine or superfine-8 per cent." Explanation I describes fine or superfine cotton cloth. It is contended on behalf of the petitioner by his learned cousel that silk choli bits and saris do not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the silk choli bits and saris fall within the ambit of cloth under section 3(2) of the Madras General Sales Tax enactment. It will now be convenient to refer to the decisions relied upon by the learned counsel for the petitioner. In Ishwardas Kapoor v. Board of Revenue, Bengal[1946] 1 S.T.C. 153., the question for consideration was whether the Banarsi shawls and saris fall within the benefit of the exemption granted by section 6 of the Bengal Finance (Sales Tax) Act of 1941. Item 16 of section 6 of that enactment granted exemption from assessment of tax in respect of handloom woven cloth. A Division Bench of the Calcutta High Court, Gentle and Das, JJ., held that the exemption cannot be claimed in respect of Banarsi shawls and saris. Gentle, J., delivering the judgment of the Bench observed at page 154: instruction from these books to understand the ordinary sense of the words in an enactment. (See Rex v. Peter16 Q.B.D. 636 at p. 641.). The meaning of cloth as set out in the various dictionaries may now be referred to: The Oxford English Dictionary: "A piece of pliable woven or felted stuff, suitable for wrapping or winding round, spreading or folding over, drying, wiping, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 4(1) of the Act that no tax shall be payable on the sale of any goods by the All India Spinners Association of Gandhi Ashram, Meerut, and their branches or such other persons or class of persons as the State Government may from time to time exempt on such conditions and on payment of such fee if any not exceeding one thousand rupees annually as may be specified by notification in the Official Gazette. There was a notification exempting cloth manufactured on handlooms. The assessee claimed the benefit of this exemption for the sale of his wares, saris lihafs, bed covers etc. It was held that the assessee could not claim the benefit of the exemption. At page 390 the Division Bench observed as follows: "The first point to be decided is whether the articles sold by the applicant can be treated as 'cloth manufactured on handlooms, within the meaning of the notification mentioned above. We are of opinion that they cannot be so treated. The word 'cloth' is to be distinguished from 'clothes' or garments. Cloth is the fabric or material from which 'clothes' are made as wearing apparel or as other articles of personal use. What is exempted under the notification is 'cloth' and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or without challa) safa, woven on handloom and handloom cloth interwoven with gold thread, of whatever description." Durry was a handloom cloth intended for covering floor, stairs etc. While holding that durry did not fall within the exemption the learned Judge observed thus at page 560: "It is, therefore, clear that if we give cloth and covering their generic import, 'durry' would appear to be included in the term. On the contrary, if a narrower interpretation is put, 'durry' would appear to be excluded." The learned Judges of the Rajasthan High Court took the view that exemptions from taxation must be strictly construed and should not be extended beyond the express requirements of the language used. But it is enough to point out that it was held that even a floor covering carpet would fall within the general sense of the term "cloth". The learned Government Pleader, appearing for the State referred us to the decision of the Andhra Pradesh High Court in The Government of Andhra Pradesh v. Venkateswarlu[1960] 11 S.T.C. 561., where the learned Judges of the Andhra Pradesh High Court dissented from the view taken by the Allahabad High Court in the decision quoted earlier. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... narrower meaning unless there are specific words of limitation therein or there is sufficient context to warrant the same." We find ourselves in respectful agreement with the decisions of the Andhra Pradesh High Court referred to above. The term "cloth" in accordance with its dictionary meaning and in its ordinary popular meaning has to be understood as any woven fabric or stuff till it is transformed into an article like dress, garment or bed cover etc. which comes into ready use as such articles. After such transformation the article can no longer retain its previous state of cloth though it is made of cloth. We are unable to appreciate the argument that any workmanship or embroidery made upon a length of cloth should, by reason of some labour or money being spent over the cloth deprive the cloth of its true and existing character. The plain words of enactment do not permit any limitation upon the meaning of the express term "cloth" by reason of its being subject to any workmanship thereupon after the stage of weaving. Mr. R. Gopalaswami Aiyangar, learned counsel for the petitioner, next contended that silk choli bits and saris without any admixture of cotton do not fall wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e State cannot strain the language to give effect to their supposed intentions. In the words of Lord Cairne in Partington v. Attorney-General(1): "If the person sought to be taxed comes within the letter of the law, he must be taxed, however great the hardship may appear to the judicial mind to be. On the other hand, if the Crown seeking to recover the tax cannot bring the subject within the letter of the law the subject is free, however apparently within the spirit of the law the case might otherwise appear to be. In other words, if there be admissible, in any statute, what is called an equitable construction, certainly such a construction is not admissible in a taxing statute, where you simply adhere to the words of the statute." We do not agree with the contention of the learned counsel for the petitioner that the enhanced levy under clause (i) can only be in respect of cloth which is adulterated with cotton and other material. It seems to us that all cloth will be subject to the 8 per cent. levy except (i) cloth woven on handloom whether of silk, artificial silk, wool, flax or any other material and (ii) cloth which is wholly of cotton. Though the words "which is not made w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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