TMI Blog1990 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners, submitted that the words referring to any commodity and occurring in a taxing statute must be understood in the manner in which such commodity is known in common parlance and commercial community. On the contrary, by wrongly applying the technical meaning supported by a technical opinion to the word "crude oil", the Tribunal has concluded that the same is a kind of mineral oil, and as such, will fall under item 47-A of the First Schedule. This approach vitiates the conclusion of the Tribunal, is the contention of the learned counsel for the petitioner. In support of this, he cited the decision in Madras Aluminium Co. Ltd. v. State of Tamil Nadu reported in [1982] 49 STC 259 (Mad.). In addition to this, he also placed reliance on the affidavits obtained from business people and filed before the Sales Tax Appellate Tribunal. 4. Learned counsel also attacked the order of the Tribunal by contending that the Tribunal ought not to have relied on a subsequent amendment to item 47-A to understand the meaning to be attributed to the word "crude oil". In support of this, he relied on a decision of the Supreme Court in Collector of Central Excise, Kanpur v. Krishna Carbon Paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnace oil:". 7.. It is true that in [1982] 49 STC 259 (Madras Aluminium Co. Ltd. v. State of Tamil Nadu), a Division Bench of this Court has held as follows: "In the commercial community, the expression 'bar' is more appropriately used to refer to long pieces of metal with sharply defined sides, which may yield a cross section of a square or a hexagon or other many sided shape. In contrast, a rod is always envisaged by people who buy or sell things in the shops as a long piece, which is round in cross section. As marketable commodities, therefore, there do exist two distinct descriptions: a 'bar' on the one hand, and a 'rod' on the other, even though they might be made of the same metal and might possibly be used in the manufacture of the same kind of articles." 8.. It is also true that the Supreme Court in Polestar Electronic (Pvt.) Ltd. v. Additional Commissioner, Sales Tax reported in [1978] 41 STC 409, has ruled as follows: "When the court is construing a statutory enactment, the intention of the legislature should be gathered from the language used by it and it is not permissible to the court to speculate about the legislative intent. If the language of a statute is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ati, J., as the learned Chief justice then was, in Porritts Spencer (Asia) Ltd. v. State of Haryana [1978] 42 STC 433 (SC); [1979] 1 SCC 82; AIR 1979 SC 300. But there is a word of caution that has to be borne in mind in this connection, the words must be understood in popular sense, that is to say, these must be confined to the words used in a particular statute and then if in respect of that particular items, an artificial definition is given in the sense that a special meaning is attached to particular words in the statute then the ordinary sense or dictionary meaning would not be applicable but the meaning of that type of goods dealt with by that type of goods in that type of market, should be searched. In the instant case, we have all kinds of papers including papers subjected to coating, impregnating, etc.'. If there is a market meaning or trade meaning of that kind of a paper that should be adhered to." But the common question that we have to consider in these cases is, the meaning to be given to the words "all kinds of mineral oils" occurring in item 47-A of the First Schedule. While construing the meaning to be given to the abovesaid words, we cannot ignore the words ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bricants." (Emphasis supplied) 9.. For completion of the narration, it may also be pointed out that certain assessees challenged the amendment giving retrospective effect. That was negatived by this Court in Krishnamurthi and Company v. State of Madras reported in [1969] 23 STC 1. It was in Krishnamurthi and Co. v. State of Madras reported in [1973] 31 STC 190, the Supreme Court, while confirming the judgment of this Court in [1969] 23 STC 1 (Krishnamurthi and Company v. State of Madras) observed as follows: "It would thus appear that the amending Act was intended to cure an infirmity as revealed by the judgment of the High Court and to validate the past levy and collection of tax in respect of all kinds of nonlubricating mineral oils, including furnace oil, with effect from April 1, 1964. The legislature for this purpose split the original entry 47 into two entries, 47 and 47-A. The new entry 47 related to lubricating oils (not otherwise provided for in the Act), quenching oils and greases, while entry 47-A covered all kinds of mineral oils (other than those falling under item 47 and not otherwise provided for in the Act) including furnace oil. The tax levied by entry 47-A, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Second Schedule.-In the Second Schedule to the principal Act,- (1) ..... ..... ..... (2) after item 3 and the entries relating thereto, the following item and entries shall be inserted, namely: ------------------------------------------------------------------------ (1) (2) (3) (4) ------------------------------------------------------------------------ '3-A. Crude oil, that is to say, At the point 4.' crude petroleum oils and of first sale crude oils obtained from in the State. bituminous minerals (such as shale, calcareous rock, sand), whatever their composition, whether obtained from normal or condensation oil-deposits or by the destructive distillation of bituminous minerals and whether or not subjected to all or any of the following processes: ........................ ". ------------------------------------------------------------------------ From the above amendment introduced to item 47-A, as rightly pointed out by the Tribunal, the intention of the legislature is quite clear that the original entry in item 47-A, namely, "all kinds of mineral oils" will include crude oil. If that was not the intention, there would be no necessity to amend item 47-A t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
