TMI Blog1980 (2) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... n stationery articles, viz., thermos-flask, razors, cosmetics, water-colour, poster colour, oil-colour, edible oil, etc. For the assessment year 1971-72, the taxable turnover of the assessee was fixed at Rs. 3,29,472.09. The dispute was in respect of tax payable on the turnover of the poster colour and water-colour amounting to Rs. 60,358. The assessing authority, after examining the books of account, issued a proposition notice in form No. 31-A to the assessee. The relevant portion of the notice reads thus: "...You have sold water-colour, oil-colour, crylin colour, etc., but have treated the sales as subject to sales tax at the rate of 3 per cent only. You have made these purchases from M/s. Camlin Private Ltd., Bombay, on the strength o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He proceeded to levy tax at 6 per cent and completed the assessment on that basis. 2.. Against the assessment orders, the assessee preferred an appeal before the Deputy Commissioner of Commercial Taxes (Appeals), Bangalore. The appellate authority accepted the contention of the assessee that water-colour, poster colour, etc., dealt with by the assessee would not fall under entry 97 of the Second Schedule. On the said view, he set aside the order of the assessing officer. 3.. Thereafter, the Commissioner, having perused the order of the appellate authority, was of the view that the view taken by the appellate authority was erroneous and was prejudicial to the revenue. He, therefore, issued a notice under section 22-A of the Act to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: "Paints, colours, dyes and varnish." The tax payable on these items is fixed at 6 per cent. If the water-colour, poster colour and oil-colour in which the assessee was dealing, come within entry 97, the assessee was required to pay tax at 6 per cent. If those articles are not included in the aforesaid entry, then the tax payable is only at 3 per cent under section 5(1) of the Act. As explained by the assessee, he is a dealer in stationery articles including water-colour, poster colour and oil-colour which are mostly used by engineering and drawing students and can popularly be described as drawing materials. Though, according to the dictionary meaning, watercolour, poster colour and oil-colour sold by the assessee fall within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of meaning attributable to a word, but that is hardly helpful in solving the problem raised in a controversy of this type. Thereafter, the Supreme Court observed as follows: "The words 'dyes and colours' used in entry No. 10 and the words 'scents and perfumes' used in entry No. 37 have to be construed in their own context and in the sense, as ordinarily understood and attributed to these words by people usually conversant with and dealing in such goods. Similarly, the words 'food colours' and 'syrup essences', which are descriptive of the class of goods the sales of which are to be taxed under the Act, have to be construed in the sense in which they are popularly understood by those who deal in them and who purchase and use them." Apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k in agreement with the High Court that these entries are not intended to extend to edible colours like food colours and to edible essences like syrup essences. It would indeed be straining the meanings of the words and expressions in those entries as understood in popular commercial sense to include edible colours and essences. If the intention of the State Government was to include food colours in entry No. 10 and syrup essences in entry No. 37 then in our view these goods could easily have been specified by their own popularly known description. In any event, assuming that another view as to the meaning of these entries is possible, we have not been persuaded to hold that the view taken by the High Court is so grossly erroneous that we s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
