TMI Blog1991 (1) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay sales tax on sale of coal ash under section 5(1) at the rate of 7 per cent, which is a multi-point levy. Similar notices were issued to pay tax under section 9 of C.S.T. Act read with section 5(1) of the Act at the rate of 10 per cent on sale of coal ash without C forms. Subsequently demands were issued to make payment as per the notices. The Commissioner of Commercial Taxes, in his circular dated June 24, 1987 expressed his view that boiler ash is taxable at 7 per cent and coal ash is not a Fourth Schedule item and is therefore taxable under section 5(1) of the Act. 4.. The petitioner s contention is: The Fourth Schedule to the Act enumerates the declared goods ; item 1 thereof refers to coal, including coke in all its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iminary objection of the respondents against the maintainability of the writ petition is therefore rejected. 7.. On merits, as usual, the learned counsel placed reliance on several decisions. 8.. One principle is now fully established; in a taxing statute words of every day use must be construed not in their scientific or technical sense but as understood in common parlance. In Porritts Spencer (Asia) Ltd. v. State of Haryana [1978] 42 STC 433 (SC); AIR 1979 SC 300 the question was whether cotton and woollen dryer felts which are woven textile felts of a kind commonly used in paper making machinery are textile fabrics . Textile was held as having only one meaning, namely, woven fabric and therefore dryer felts were held to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny was carrying on business in some of the goods which were discarded machinery, coal and by-products and subsidiary productions such as kolsi , etc. Kolsi was obtained not as the main product at all. It was a by-product. Kolsi (cinders) were found to be small pieces of coal which are not fully burnt. The Supreme Court held at page 9 and 10 of STC; 1070 of AIR: It appears that kolsi is not capable of extreme fuel potency required in the furnaces of the appellant-company, but it is still capable of being used in lighter furnaces . This kolsi is discharged from the furnaces regularly and continuously day after day. The company collects that kolsi and sells it to intending purchasers in bulk. Kolsi would be appropriately regarde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l forms would include those forms of rice, though, in actual use they may be different. The Madhya Pradesh High Court in [1972] 29 STC 418 [App.]. (Commissioner of Sales Tax v. Samrathmal Dhoolchand) said that the dictionary meaning of coal includes coal ash; to the same effect is another decision of same High Court found in [1972] 29 STC 413 (Binod Mills Co. Ltd. v. Commissioner of Sales Tax). However, a Full Bench of the same High Court in Hukumchand Mills Ltd. v. Commissioner of Sales Tax [1988] 71 STC 101 held that coal ash is different from coal, because the former is the product of the latter. Similarly in [1972] 30 STC 57 (Venkataraman and Company v. Deputy Commercial Tax Officer) Madras High Court held that cinder is different ..... X X X X Extracts X X X X X X X X Extracts X X X X
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