TMI Blog2013 (9) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... the State Development Tax was granted on the goods on which trade tax rebate was allowed to the full extent - The notification dated March 7, 2005, provided for rebate to the extent of the amount of tax paid by dealer on paper meant for writing, printing or packing purpose, excluding news print, under the Uttar Pradesh Tax on Entry of Goods Act, 2000, from the tax levied under the Uttar Pradesh Trade Tax Act 1948, on the sale of such paper subject to the conditions that:- (i) the amount of rebate shall not exceed the amount of trade tax paid; (ii) rebate shall be allowed only in relation to such paper on which Central Excise Duty has been paid. - Decided against the assessee. - Writ Tax No.-18 of 2007 - - - Dated:- 21-3-2012 - Sunil Ambwani And Pankaj Naqvi,JJ. For the Petitioner : Praveen Mishra,Bharat Ji Agrawal,Piyush Agrawal For the Respondent : C.S.C. JUDGMENT 1. We have heard Sri Bharat Ji Agrawal, Senior Advocate, assisted by Sri Piyush Agarwal for the petitioner. Sri S.P. Kesarwani, Additional Chief Standing Counsel appears for the Central Excise Department. 2. The petitioners are manufacturers of paper, meant for packing purposes. By this writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rebate shall be allowed only in relation to such paper on which Central Excise Duty has been paid. The notification dated 7.3.2005, is quoted as under:- Uttar Pradesh Shasan, Kar Avam Nibandhan Anubhag-2. The Governor is pleased to order the publication of English translation of Government Notification No. KA.NI-2-732/XI-9(37)/97-U.P. Act-15-48-Order-(15)-2005, dated March 7, 2005 for general information: NOTIFICATION KA.NI-2-732/XI-9(37)/97-U.P. Act-15-48-Order-(15)-2005 Dated : Lucknow : March 7, 2005 WHEREAS, the State Government is satisfied that it is expedient in public interest so to do: NOW, THEREFORE, in exercise of the powers under Section 5 of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. 15 of 1948) the Governor is pleased to allow with effect from March 7, 2005, a rebate to the extent of the amount of tax, paid by dealer (whether by himself or through the manufacturer) on paper meant for writing, printing or packing purpose excluding news print under the Uttar Pradesh Tax on Entry of Goods Act, 2000 (U.P. Act No. 12 of 2000) from the tax levied under the Uttar Pradesh Trade Tax Act, 1948 on the sale of such paper subject to the following co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings to the full extent of 5 %, in view of notification dated 7.3.2005, issued under Section 5 of the U.P. Trade Tax Act 1948, allowing rebate to the extent of the amount of Entry Tax paid by dealer. He submits that since the rate of Trade Tax and Entry Tax were same, and that the Trade Tax rebate to the full extent was allowed, the petitioners were entitled to the benefit of notification dated 28.04.2005, and thus State Development Tax shall not be leviable on such goods purchased, manufactured and sold by the petitioner. 8. Sri Agarwal has relied upon decision of the learned Single Judge in M/s. Dayalji Industries Vs. The Commissioner Commercial Tax, U.P., Lucknow [2012 UPTC 216], in which it was held in para 12 as follows:- Having examined the notification, I find that the conclusion drawn by the Tribunal is completely misplaced. Each and every clause of the notification refers to a separate category of commodity and can stand on its own. The Tribunal has wrongly come to the conclusion that one condition is connected to the other, that cannot be the case because every clause refers to specify benefits under specific sections and gives specific relief. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses (i), (ii) and (iv). All exemptions are by way of notifications, issued by the State Government or orders to be passed by the competent authorities. Whereas clause (i) refers to recognition certificate; clause (ii) refers to 2 per cent or below 2 per cent of trade tax that are charged under Section 3-A or Section 3-D; clause (iv) speaks of exemptions that are granted under Section 4-C. Clause (iii) is thus to be interpreted in a manner, namely, the exemption from State Development Tax would be admissible where the Trade Tax rebate is allowed to the full extent. The words 'a rebate to the extent of the amount of tax paid by dealer' in the notification dated 7.3.2005, is qualified to the amount of tax, and not the rate of tax. We also find that that the rebate is qualified on two conditions, namely, that the amount of rebate shall not exceed the amount of trade tax paid, and that the rebate shall be allowed only in relation to such paper on which Central Excise Duty has been paid. 12. In taxation, there may be incidence where same rate of tax is applicable and exemptions are claimed. However, as observed above, the notification has to be given strict interpretation. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he is covered by the said provision. In case of doubt or ambiguity, benefit of it must go to the State. This is for the reason explained in Mangalore Chemicals and other decisions, viz., each such exception/exemption increases the tax burden on other members of the community correspondingly. Once, of course, the provision is found applicable to him, full effect must be given to it. (emphasis supplied) 28. The view expressed in Novopan India case (supra) finds further approval in Tata Iron and Steel Co. Ltd. v. State of Jharkhand, (2005) 4 SCC 272, p. 289, para 42 where the Court observed that: 42. Eligibility clause, it is well settled, in relation to exemption notification must be given a strict meaning. (emphasis supplied) And further, in the same case (TISCO cae, SCC pp 289090, para 44): 44. The principle that in the event a provision of fiscal statute is obscure such construction which favours the assessee may be adopted, but it would have no application to construction of an exemption notification, as in such a case it is for the assessee to show that he comes within the purview of exemption. (emphasis supplied) 29. In A.P. Steel Re-Rolling Mills ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... narrower genus so as to limit the meaning of the general words. It is essential for application of the ejusdem generis rule that enumerated things before the general words must constitute a category or a genus or a family which admits of a number of species or members. In the State of Bombay Vs. Ali Gulshan [AIR 1955 SC 810] it was held that specific word must form a distinct genus or category. 16. We are of the view that that learned Single Judge in M/s. Dayalji Industries (supra) did not interpret the notification on the settled principles on which exemptions notifications are to be tested. All exemption notifications are to be given a strict interpretation, and that all the four classes of goods were required to be considered, to give a definite meaning, for allowing rebate. The Trade Tax rebate to be allowed to the full extent, has different meaning and connotation than the exemption from Trade Tax allowed to the extent of same amount of tax, which is paid as Entry Tax. The expressions 'amount of tax', and 'rate of tax' have different meaning. 17. In Maharashtra University of Health Sciences and others Vs. Satchikittsa Prasarak Mandal and others [2010 (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Officer and others [2004 (1) SCC 755], the Supreme Court held in para 22 at p. 765 as follows:- 22. In construing the above mentioned three words which are used in association with each other, the rule of construction noscitur a sociis may be applied. The meaning of each of these words is to be understood by the company it keeps. It is a legitimate rule of construction to construe words in an Act of Parliament with reference to words found in immediate connection with them. The actual order of these three words in juxtaposition indicates that meaning of one takes colour from the other. The rule is explained differently: 'that meaning of doubtful words may be ascertained by reference to the meaning of words associated with it'. [See Principles of Statutory Interpretation by Justice G.P. Singh (8^th Ed.), Syn.8 at pg.379]. 19. We are thus of the view that notification dated 28.4.2005, cannot be interpreted in the manner, that where the rate of entry tax and trade tax is at 5 %, and consequently rebate has to be given on the Trade Tax, in view of notification dated 7.3.2005, the exemption will be applicable for State Development Tax. 20. For the aforesaid reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
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