TMI Blog1973 (1) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax, Central Zone, Ernakulam, held that the exemption granted by the assessing authority was irregular and improper and outside the scope of the protection given by the notification above-mentioned. He, therefore, directed the assessing authority to add back this amount to the taxable turnover and to refix the tax liability. The matter was taken before the Sales Tax Appellate Tribunal, Trivandrum. And the Appellate Tribunal held against the assessee on the question of exemption and hence this revision. 3.. The only question that falls for our consideration in this case is whether catalogues, annual reports of Indian Chamber of Commerce and annual statements of accounts and a publication called "Tea Review" are "books meant for reading and reference". 4.. Before we discuss the question of law bearing on this point, it is useful to extract in full the notification, the relevant entry and the explanation. "S.R.O. No. 342163-In exercise of the powers conferred by section 10 of the Kerala General Sales Tax Act, 1963 (Act 15 of 1963), the Government of Kerala having considered it necessary in the public interest so to do hereby make an exemption in respect of the tax payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court. The relevant observations in this are: "The provision in rule 18(2) does not levy a tax but provides an exemption and therefore the principle that in case of ambiguity a taxing statute should be construed in favour of the taxpayer does not apply to the construction of rule 18(2)." 8.. In Commissioner of Income-tax v. Ramakrishna Deo[1959] 35 I.T.R. 312 (S.C.)., their Lordships of the Supreme Court had to consider a similar argument. At page 316, the following observation appears: "At the very outset, we should dissent from the view expressed by the learned judges that the burden is on the department to prove that the income sought to be taxed is not agricultural income. The law is well-settled that it is for a person who claims exemption to establish it, and there is no reason why it should be otherwise when the exemption claimed is under the Income-tax Act." 9.. Therefore, the law is well-settled that in a taxing statute where an assessee claims that his case comes within an exemption, the burden is on him to prove that he comes within the exemption and a liberal interpretation in favour of the assessee cannot be given in such cases. 10.. The next question wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this can never be the intention of the rulemaking authority. We are fortified in this conclusion by the express wording of the notification itself which reads: "..............the Government of Kerala having considered it necessary in the public interest so to do hereby make an exemption in respect of the tax payable under the said Act...................." It cannot be that the Government considered it necessary in public interest to extend such benefits to owners of printing presses and other companies who are engaged in printing and publishing such books only. 11.. In a taxing statute, particular words used have to be given their ordinary meaning. When a person uses the word "book", an ordinary person understands by that expression a book meant for reading purposes. In the explanation referred to earlier, the object is made clear by the expression "meant for reading or reference". The object is further made clear by excluding "account books, note-books, diaries and the like". The words "and the like" take within their ambit books like "Tea Review", balance sheet and the catalogue with which we are concerned in this case. 12.. How a word or words in a statute have to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatutes resort should be had not to the scientific or technical meaning but to the meaning attached to them by those dealing in them in their commercial sense." 15.. The counsel for the petitioner relied upon the decision in Govindaswamy Binding Works v. State of A.P.[1972] 29 S.T.C. 219. There, a Division Bench of the Andhra Pradesh High Court considered the expression "all books and periodicals", which were exempted from payment of tax under the relevant provision of the Sales Tax Act of that State. Obul Reddi, J., who spoke for the Bench, in his discussion of the case observes that the expression "all books" take in every book imaginary. He referred to the Allahabad decision reported in Industrial Commercial Service v. Commissioner of Sales Tax(1) and distinguished it. The emphasis by the learned Judge in that case was to the expression "all books". He did not consider whether the exemption related to books which were generally known as "books ", but laid down that there was absolutely no ambiguity in the expression "books" and that the intention of the Government was abundantly manifest that it intended to include "any kind of books, including account books, note-books, loo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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