TMI Blog2001 (4) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... or silver mixed with copper, lead or any other kind of base metal. While so, the Government of Andhra Pradesh issued G.O. Ms. No. 1092 dated October 31, 1994 under section 9(1) of the APGST Act reducing the net rate of sales tax to per cent on sale of bullion and specie (gold). The APGST Act was amended by Act No. 22 of 1995 with effect from April 1, 1995, prescribing the sales tax in the case of bullion and specie at the rate of 4 per cent. Again the Government issued a notification under section 9(1) of the APGST Act in G.O. Ms. No. 252, dated May 19, 1995 reducing the rate of sales tax in the case of bullion and specie (gold) to per cent with effect from April, 1, 1995. 3.. For the assessment year 1994-95, the petitioner returned a turnover in silver bars in a sum of Rs. 14,33,01,470 and paid sales tax at the rate of per cent and the assessing authority accepted the said returns and completed the assessment on November 27, 1995. Later, the assessing officer issued notice dated August 17, 1996 proposing to reopen the assessment under section 14(4)(c) of the APGST Act and bringing the above turnover to tax at 2 per cent apart from additional tax and surcharge, on the premi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.O. Ms. Nos. 1092 and 252 in the bracket, immediately after the term "specie". It is therefore contended that when once the Government has also clarified that it is not intended to give the benefit of lower rate of tax not only to gold but also to silver bullion, the action of the respondent-authorities in reopening the assessment as well as framing the reassessment is not in accordance with law and it is only a change of opinion with reference to the same notification issued by the Government under section 9(1) of the APGST Act. The learned counsel also contended that if there is any ambiguity in the interpretation of the provision or the G.O., under which benefit was granted to the dealers, it should be interpreted in favour of the assessee and if so interpreted there is no case for the department to levy higher rate of tax in the revised assessment. The learned counsel for the petitioner relied upon the judgment of the apex Court in the case of Commissioner of Sales Tax v. Industrial Coal Enterprises [1999] 114 STC 365; (1999) 2 SCC 607, and contended that where there is a provision for concession it should be construed liberally and if so construed the petitioner is entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 20 of the First Schedule to the APGST Act the original rate prescribed is at 2 per cent. However, the State Government issued notification under section 9(1) of the APGST Act in G.O. Ms. No. 1092 dated October 31, 1994 reducing the rate of sales tax to half per cent in respect of bullion and specie (gold) from the date of the said Notification. The said entry is as under: FIRST SCHEDULE S. No. Description of goods Point of levy Rate of tax Effective from 20 Bullion and specie. (1020) At the point of first sale in the State. 2 8-7-1983 4 1-2-1995 9.. For convenience, the relevant portions of the above two G.Os., are extracted hereunder: "G.O. Ms. No. 1092, Revenue (CT-II) Department dated 31-10-1994. NOTIFICATION I In exercise of the powers conferred by sub-section (1) of section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (Act-VI of 1957), the Governor of Andhra Pradesh hereby directs: (a) that the tax leviable under the said Act on the sale of bullion and specie (gold) be reduced from 2 per cent to per cent, all included (net per cent); (b) that the tax leviable under the said Act on the sale of jewellery, including those set with precious ston ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of 2 per cent. The contention of the assessee is that the benefit of reduced rate of tax is available to both gold and silver bullion and the restriction contained by the expression "gold" in the bracketed portion is applicable only to the specie and not the bullion. 12.. To appreciate the contention of the petitioner, it is better to look into the meaning of the expressions bullion and specie mentioned under item No. 20 of the First Schedule to the APGST Act. These expressions are not defined in the Act, but Explanation No. 1 under the First Schedule, provides the meaning of the expression "bullion", which is as under: "Explanation I: The expression 'bullion' in items 20 and 21 means pure gold or silver and includes gold or silver mixed with copper, lead or any other kind of base metal." From the above it is clear that bullion means pure gold or silver and includes gold or silver mixed with any other kind of base metal. As far as specie is concerned, it is not even explained in the Act. Therefore, we have to consider the ordinary meaning of the expressions as contained in the dictionaries. As per "The New International Webster's Comprehensive Dictionary the meaning o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pretation which has always to be borne in mind while interpreting entries in sales tax legislation and it is that the words used in the entries must be construed not in any technical sense nor from the scientific point of view but as understood in common parlance. We must give the words used by the Legislature their popular sense meaning 'that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it'. The word 'bullion' must, therefore, be interpreted according to ordinary parlance and must be given a meaning which people conversant with this commodity would ascribe to it. Now it is obvious that 'bullion' in its popular sense cannot include ornaments or other articles of gold. 'Bullion' according to its plain ordinary meaning, means gold or silver in the mass. It connotes gold or silver regarded as raw material and it may be either in the form of raw gold or silver or ingots or bars of gold or silver.............................The word 'specie' has a recognised meaning and according to Webster's New World Dictionary, it means 'coin, as distinguished from paper money'. The Law Dictionaries also give the same meaning............ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find any merit in the said contention of the learned counsel. It is not the case that the bracketed word "gold" in clause (a) after the expression bullion and specie was omitted from the date of the original G.Os., when concessional rates of tax was introduced. If for any reasons, the concessional rate of tax is extended for other items later that do not confer any benefit for the earlier period unless it is specifically extended in the order itself. Therefore, there is no merit in the above contention. It is held by the apex Court that the object of the relevant exemption notification and the intention of the State Government in granting exemption are to be taken into account while interpreting the words used in the G.Os., in question. Here there is no ambiguity in the expressions used in the G.O. Further, the intention of the State Government is also clear that only gold bullion and specie is entitled for concessional rate of tax. 15.. Further, it is clear from the records that immediately after issuing the G.O. Ms. No. 1092, the Jewellers' association sought for a clarification from the Commissioner of Commercial Taxes and accordingly he has also issued a clarification on Mar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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