TMI Blog2004 (10) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that Fevicol MR and Fevicryl acrylic colours are items of stationery and as such taxable under entry 21 of Part IV of Schedule II? " 3.. The respondent is a dealer engaged in the business of sale of goods such as talcum powder, fevicol, poster colours, gum tube, liquid soap, etc. For the period April 1, 1989 to March 31, 1990 and April 1, 1991 to March 31, 1992 the dispute arose before the taxing authorities (assessing authority) in relation to two items (i) Fevicryl acrylic colours and (ii) Fevicol MR" The dispute was as to under which entry these two items will fall and secondly, what is the rate of tax which is applicable to these two items. According to dealer, i.e., respondent herein, Fevicryl acrylic colour items falls in the category of stationery article and hence liable to be taxed as stationery articles under entry 21 of Part IV of Schedule II at the rate of 6 per cent whereas the case of Revenue for this item was that it falls in entry 20 of Part II of Schedule II and hence, liable to be taxed at the rate of 16 per cent as paints. So far as other item, i.e., "Fevicol MR" (synthetic gum) is concerned, according to dealer it also falls in entry 21 of Part IV of Sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue) on the questions referred. 8. The relevant entries which have a bearing over the question referred, need mention infra: a. Entry 21 of Part IV taxable at 6 per cent Stationery articles other than paper, paperboard and news print b. Entry 20 of Part II taxable at 16 per cent Dyes, paints, varnishes, lacquers, enamels, glue, paint brush, sandpaper, turpentine oil and polish excluding dry colours, gulal and shoe polish taxable at 16 per cent. c. Entry 84 of Part III taxable at 12 per cent with effect from September 20, 1990 All kinds of adhesives and solutions including natural resins d. Entry 1 of Part VI taxable at 12 per cent up to September 19, 1990 and at 8 per cent from September 20, 1990. All other goods not included in Schedule I or any other part of Schedule II. 9. It is well-established rule of interpretation in so far as it has its application to entries in taxation statute (such as sales tax, excise) where the primary object is to raise revenue and for that purpose various products are differently classified, the entries are not to be understood in its scienti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... words, the use of expression "stationery articles" denotes that all those articles which are or can be used or regarded as stationery articles would come within the mischief of this expression. What is excluded from this expression is three items of stationery paper, paperboard and news print. In other words, instead of defining each and every article of stationery, the Legislature thought it fit to use one general expression for all those articles which can be or capable of being used as stationery articles and carved out only three specified category of stationery articles namely paper, paperboard and news print from the clutches of entry 21. These three articles though otherwise are regarded as stationery articles in commercial world, yet for the purpose of imposing sales tax under entry 21, they will not be so treated as stationery articles. It is due to their exclusion from entry 21. 14.. The question that still remains to be answered is, whether article sold as "Fevicol MR" (synthetic gum) in market can be said to be a stationery article so as to tax the same in entry 21? 15.. As observed supra, in our opinion, it can be so held in favour of dealer. The expression " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xability can be changed only by specific exclusion clause by making suitable amendment in the existing entry. When a commodity in question can be taxed in one entry which has a less rate of tax then, benefit of the same has to be extended to a dealer so long as the concerned relevant entry is not suitably amended. Indeed, nothing prevented the legislature to amend entry 21 with effect from September 20, 1990 and bring the commodity in question in its exclusion category alongwith three existing items specified in the said entry. In other words, if the intention of Legislature was to tax gum in entry 84 with effect from September 20, 1990 treating the same to be adhesive then gum could have been added after the word "news print" in entry 21. In such event, though gum was treated as one of the stationery article, yet the same was excluded from that category with effect from September 20, 1990 for being separately taxed in entry 84 with effect from September 20, 1990 like other three items specified in entry 21. This was not done and hence, one can reasonably conclude that gum, i.e., "Fevicol MR" (a trade name of commodity) was continued to be recognised as stationery item not only up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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