TMI Blog2005 (7) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... An appeal under section 9 of the Act was filed which was allowed by the Assistant Commissioner (Judicial) by the order dated January 11, 1989. As a result of the appellate order, the recognition certificate was directed to be amended to the effect that the dealer-opposite party would be entitled to purchase raw material and packing material without payment of any sales tax on such purchases. This order has been confirmed in second appeal by the Tribunal in Second Appeal No. 55 of 1989, which is subject-matter of the present revision. Heard the counsel for the parties and perused the record. The short question which is "involved" in the present revision is whether manufacture of toughened glass amounts to the manufacturing of "glass and glasswares including optical glass in all its forms" as mentioned in the aforesaid notification. If that is so, the dealer would be entitled to purchase raw material and packing material for the manufacture of notified goods namely, toughened glass without payment of any tax on the purchase of such raw material and the packing material. To resolve the controversy it is appropriate to refer the various notifications relied upon by the learned c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ); [1986] UPTC 1345 (SC). 2.. Hindustan Safety Glass Works v. Commissioner of Sales Tax [1998] 111 STC 661 (All); [1998] UPTC 1012. The moot question involved, therefore, is whether the toughened glass is included in the entry namely, "glass and glasswares in all forms", in the notification issued under section 4-B of the Act. While interpreting the notification issued under section 4-B of the Act, the aims and object of section 4-B is to be kept in mind. The said section provides special relief to certain manufacturers, to manufacture notified goods. The relief is given in the form of concessional rate of tax/exemption from tax on the purchases of raw materials and packing materials for use in the manufacture of notified goods. Sub-section (1) of section 4-B of the Act gives an overriding effect upon other sections, namely, sections 3, 3-A, 3-AAAA and 3-D. The department on the application of such manufacturers of the notified goods grants them a certificate known as recognition certificate which authorises them to purchase raw material and the packing material at concessional rate of tax/without payment of tax to manufacture the specified goods. Rule 25-A is the relevant ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thermometers, lactometers and the like do not come up to one's mind. Applying the aforesaid test, therefore, we are clearly of the view that the clinical syringes which the assessee manufactures and sells cannot be considered as 'glassware' falling within entry 39 of the First Schedule to the Act." In the light of the above judgment of the Supreme Court, to answer as to whether the particular item is a "glass and glassware" or not, resort should be had to the common and popular meaning of the item in question. In Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, Akola [1961] 12 STC 286; [1961] 1 SCR 279; AIR 1961 SC 1325, the Supreme Court was concerned with the word "vegetables" occurring in the C.P. and Bearer Sales Tax Act, 1947 and it was held as follows: ". . . But this word must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance. It has not been defined in the Act and being a word of everyday use it must be construed in its popular sense meaning that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it. It is to be construed as understood in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, rear screens and door screens used in motor vehicles cannot be described as "glass" or "glasswares ". In para 17 of the judgment (at page 331 of STC) the Supreme Court has made the following observations: "Upon the tests and having regard to the foregoing considerations which have appealed to us when considering the proper classification of glass mirrors, we have no hesitation in holding that the screens cannot be described as 'glass or glasswares' under tariff item No. 23A(4). No one dealing in or using the screens would consider them as 'glass or glasswares'. They can only be considered as motor vehicle parts. Even if we assume that they could fall under Tariff Item No. 23A(4) relating to 'glass and glasswares' also, inasmuch as Tariff Item No. 34A is a special entry and tariff item No. 23A(4) is a general entry, the special must exclude the general and therefore also it is tariff item No. 34A which prevails and is attracted." In para 13 of the judgment (at page 329 of STC) the Supreme Court has noted that wind screens, rear screens and door screens of motor vehicles are manufactured according to the specific shape and measurement indicated in the orders, for, different ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se words in Commissioner of Wealth Tax v. Smt. Muthukrishna Ammal AIR 1969 SC 740. In repeating the said words in the amended clause (e) of section 2, Parliament must be taken to have used the said words to bear the meaning which has been put upon them by this court in Commissioner of Wealth Tax v. Smt. Muthukrishna Ammal AIR 1969 SC 740." It was held by the Supreme Court in the case of Atul Glass Industries (P.) Ltd. [1986] 63 STC 322; [1986] UPTC 1345, in the year 1986 by the judgment dated July 10, 1986 that "glass and glasswares" do not include the screens and they can only be considered as motor vehicle parts. Automobile screen thus cannot be held to be included in "glass or glasswares". It is true that this court was considering the entry No. 39 of Notification dated May 20, 1976 issued under the U.P. Trade Tax Act, in the case of Hindustan Safety Glass Works [1998] 111 STC 661 (All); [1998] UPTC 1012, wherein it has held by following the judgment of the Supreme Court that the toughened glass sheets are not included in the aforesaid entry which relates to all glass and wares made of glass, but not including plain glass panes. The aforesaid entry was contained in a notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature and after compressing air, the sheets are suddenly cooled. To manufacture a bending sheet, the required curvature is given in between heating and cooling operation, to bend. In this process the physical properties of the finished goods are changed and the resistance power of glass is increased and it does not reduce to sharp edged pieces at the time of its break. Thus, in my view the contention of the department is correct that the toughened automobile glass sheets used in automobiles as front, rear and side screens are commercially different and therefore more appropriately they cannot be described as "glass and glasswares". In view of the well-known principles relating to the interpretation of entries, as discussed above, the words "glass and glasswares" should be interpreted as it is understood by the persons who deal with them. It cannot be described as "glass or glasswares". In popular sense a general merchant dealing in glasswares, does not ordinarily deals in the articles like automobile toughened safety glass parts, wind screens, door screens, side screens and back screens. It is equally unlikely that the consumer would ask for the said article from a glassware sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the said circular is misplaced one as it does not touch the controversy involved in the present case. The other circular dated February 13, 1991 is with regard to the question of lamp shades, globe, chimney, jharfanoos, etc. In view of the said circular there is no difficulty in treating lamp shades, globe, chimney and jharfanoos, etc., as "glasswares" mentioned in the notification dated August 29, 1987. I hardly see any application of this circular to the present controversy. It does not in any manner advance the contention of the learned Senior Counsel for the dealer-opposite party. The reason being that automobile toughened safety glass, including wind screen, door screen, side screen and back screens are themselves finished items and they do not stand at par with the items like lamp shades, globe, etc. The upshot of the above discussion is that the order of the Tribunal holding that automobile toughened safety glass, wind screen, etc., as "glasswares", within the meaning of the notification under section 4-B of the Act cannot be sustained. The order of the Tribunal including the order of the first appellate authority is set aside. The revision is allowed. No order as to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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