TMI Blog1989 (12) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... nce (Sales Tax) Act, 1941 and the Central Sales Tax Act, 1956 (hereinafter referred to as "the 1941 Act", and "the 1956 Act", respectively). Since the year 1987 the applicant has been importing dimmers and light chasers from outside the State of West Bengal for sale and accordingly, the registration certificates were duly amended by including such articles. The impugned consignment consisted of 240 pieces of light dimmers of the invoice value of Rs. 11,556.71. These were imported from Messrs. Techno Power Enterprises, Gandhinagar, Gujarat, by road transport but were seized by the Inspector of Commercial Taxes, Chichira Check Post, Midnapore, on March 24, 1989, on the ground that those were electronic fan regulators being a notified commodit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to move this Tribunal because the authorities below may not be competent to decide the same. The seizure and the imposition of penalty have thus been challenged. 4.. The respondents have opposed the application by filing an affidavit-in-opposition. Their case is that the seized articles were described on the packings as speed regulator and light dimmer which means that those were regulators for fans, exhaust fans, etc., being a commodity notified under Notification No. 1342-F.T. dated March 21, 1978, read with Notification No. 3945-F.T. dated August 26, 1977, under section 25 of the 1954 Act. Though the applicant got these items entered in their registration certificates under the 1941 Act as light dimmer in the "resale" column, it should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. As regards the cost, it is claimed by the applicant that the light dimmers are costlier than fan regulators to the extent that if a fan regulator costs about Rs. 17.50 each, a light dimmer costs Rs. 71 each. This is one of the reasons for which the consuming public do not generally use these dimmers as fan regulators. 6.. According to Mr. S.N. Bose, the learned Advocate for the applicant, these goods, namely, Rider solid state light dimmers-cum-speed controllers are exigible to tax under the residuary provision of the 1941 Act, namely, section 5(1)(e). But, according to the learned State Representative, the Commercial Tax Officer has treated the goods as regulators, being parts of fans and exhaust fans under Notification No. 3945-F.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n matters of the nature which is confronting us in this case, stated briefly, is that where the statute does not give any definition, an item under sales tax laws is not to be understood or interpreted in its scientific or technical meaning but in the popular sense or in the sense in which it is dealt with by the trade circle. The popular sense means the sense in which it is understood and treated by the people who deal in or deal with the same, namely, who purchase and sell the article. It is also now wellsettled that where an item is put to more than one use, it will be understood in accordance with the predominant use to which it is generally put. 8.. As regards the cost factor agitated by the applicant, Mr. Majumdar submitted that alt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cartons of these goods, it is clearly stated that these are "also used to control speed of exhaust fan". It is also stated that "as a dimmer increases bulb life". It appears that the Commercial Tax Officer did not consider the matter in accordance with the well-settled principles of law, namely, the dominant use rule and the common or commercial parlance rule. The learned State Representative submitted that sitting at the check post the Commercial Tax Officer was not in a position to consider and ascertain these aspects. According to him, the Assistant Commissioner of Commercial Taxes, before whom the applicant has already filed an appeal against the penalty order, is competent and suited to ascertain and consider these aspects. He furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to hear and dispose of, in accordance with law, the appeal against the order of penalty dated April 13, 1989, made by the Commercial Tax Officer, Chichira Check Post, Midnapore, in seizure case No. 648 (54)-CCP/Mid of 1988-89 within eight weeks from this date. Even if the appeal has already been disposed of, it shall be revived and treated as pending. The Assistant Commissioner shall decide the appeal having regard to the principles mentioned and the observations made in this judgment. He shall give the applicant a reasonable opportunity of being heard. The amount of penalty already paid, shall abide the result of the appeal. The learned State Representative shall communicate these directions to the Assistant Commissioner forthwith ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
