9911796707
TMI Blog1995 (12) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... sments framed in the respective assessment years by the concerned assessing authorities. 2.. Facts in nutshell are: Petitioners are dealers in purchase and sale of bamboo sticks and other raw materials required for manufacture of agarbathis. Petitioners had claimed exemption in respect of sale of "bamboo sticks" for the assessment years in question on the basis of notification issued by the State Government exercising its powers under section 8-A of the Karnataka Sales Tax Act, 1957 (for short "the State Act"). The said claim has been negatived by the assessing authorities, and according to the petitioners, solely basing on the circular instruction of the Commissioner of Commercial Taxes. In some of the petitions, petitioners have question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. Bamboos are distantly related to wheat, oats and barely. But unlike these crop grasses, most bamboos are of giant size. Some may stand as much as 120 ft. (37 metres) high and have stems 1 foot (30 centimetres) in diameter. Bamboo stems are used as fishing poles and in ornamental screens, cooking utensils, tools, baskets and building material. Meaning attached to the word "split" in Webster's dictionary is as under: "split v.t. to cut lengthwise; to cleave; to separate......." The entry 1 of Part B of the Second Schedule to the Act speaks of bamboo as a whole and bamboo in split in form. Entry does not envisage bamboo product. The word "split" in entry is as opposed to the word "whole" with reference to bamboo. A split bamboo continues t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in the notification is of general character and it should be understood in the sense in which every person understands that expression and it is not necessary to give a rigid or artificial meaning. The words "bamboo product" should be understood in its common parlance and if it is so understood, it cannot be said "bamboo agarbathi sticks" would not fall within the expression "bamboo products". Popular meaning of the expression "bamboo agarbathi sticks" are those small and thin sticks which are prepared by human effort out of bamboo splits. By no stretch of imagination it can be said "bamboo splits" and "bamboo agarbathi sticks" which are produced by human effort and labour are one and the same. The word "product" does not have a restri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt was pleased to explain the meaning of the expression "product". "The word 'product' is defined in Webster's Comprehensive Dictionary as 'anything produced or obtained as a result of some operation or work'. The expression 'bone products' therefore, merely means anything produced or obtained from bones. Whether such derivation is by a simple physical process or by a chemical reaction would seem to make no difference to the end-product. Butter milk, for instance, does not cease to be a milk product merely because a chemical process is involved in the transformation. The ossein and gelatine manufactured by the respondent can, without straining the expression used in the notification, be described as bone products." Applying the principl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court, I am of the view that the petitioners are entitled to the reliefs in question. 11.. The learned counsel for the petitioners also contended that the notification dated March 31, 1989 is a beneficial notification and the same has to be liberally construed and they also contended that any other interpretation which would render the exemption notification redundant should not be accepted. This aspect need not be gone into in these writ petitions for the reason I have already held that the popular, perhaps the literal meaning of the expression "bamboo product" used in the notification dated March 31, 1989 would include bamboo agarbathi sticks. 12.. In view of the foregoing, I hold that the dealers are not liable to pay sales tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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