TMI Blog2005 (10) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Tribunal that the stainless steel water filter was stainless steel utensil, covered by Schedule entry C-II-46 covered by entry No. 145(1) of notification issued under the provisions of section 41 of the Act, thereby it attracts tax at 1 per cent. 4.. The Commissioner of Sales Tax by order dated July 12, 1993 passed under section 52 held that water filter would fall under the residual entry C-II-102, attracting tax liability at 10 per cent. 5.. The respondent aggrieved by the aforesaid determination invoked appellate jurisdiction of the Tribunal and reiterated their contentions which were canvassed before the Commissioner of Sales Tax. The Tribunal, however, held that the stainless steel water filter was an item of utensil falling in the entry C-II-46 of the Schedule under the Act and covered by entry No. 145(1) of the notification issued under the Act attracting tax at the rate of 1 per cent. Question of law: 6. Feeling aggrieved by the aforesaid decision, the applicant Revenue is before us through this reference at the instance of the Tribunal to seek opinion of this Court on the substantial question of law reproduced hereinbelow: "Whether, on the facts and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el article but by no stretch of imagination, it could be said to be stainless steel utensil used for household purposes. He while elaborating his submission further submits that if comparative study of Schedule entry C-II-46 and entry No. 145(1) in the notification is made it would indicate that only particular kind of stainless steel utensils used for the household purposes are covered by exemption notification attracting reduced rate of tax at 1 per cent as against the Schedule rate of tax at 10 per cent. 11.. Shri Harpale submits that the water filter which is used as filtration system is not a utensil simplicitor. The main function of the product is to filter water and not merely to store it. Merely for storage of water nobody uses water filter. 12.. Shri Harpale further submits that the functional character of the goods is required to be determined before considering whether or not the article falls in a particular taxable entry. He placed reliance on the judgment of this Court in the case of Atul Glass Industries (P) Ltd. v. Collector of Central Excise [1986] 63 STC 322 (SC); 63 STR 320 (SC). 13.. Shri Harpale further submits that taxes are levied on the goods and not o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication submitted that the word "utensil" used in the notification is meant for domestic establishment essentially for home life. He further submits that so far as respondent is concerned, the respondent is selling water filters as utensils as such it has to be treated as utensil. He submits that entry in question needs to be understood in its popular sense. 19.. Shri Surte to bring home his submission placed reliance on the judgment of the Madhya Pradesh High Court in the case of Yadav Metal Industries v. Commissioner of Sales Tax [1980] 46 STC 30, wherein the M.P. High Court relying upon ordinary dictionary meaning of the word "utensil" sought to include within its fold "tagaries" and "ghamelas" being useful or necessary for household use. 20.. Shri Surte also placed reliance on the judgment of the apex Court in the case of State of U.P. v. Kores (India) Ltd. [1977] 39 STC 8, wherein the apex Court had considered the meaning of "paper" used in the Uttar Pradesh Sales Tax Act wherein the apex Court after referring to various shades of meaning, finally observed at page 11, thus: " ..It is clear that in popular parlance, the word 'paper' is understood as meaning a substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of tax during this period has been with a view to reduce the tax burden in respect of items which are frequently used by the general public in their kitchen for household purposes. Therefore, it would be improper to presume that the stainless steel water filter which is also, usually, made use in the offices or such other places is included in the entry 145(1). As the entry 145(1) has been cautiously made narrow by the Legislature, it follows that the Legislature did not extend the benefit of notification to all the items which are otherwise covered under Schedule entry C-II-46. It appears that the Legislature intended to include only those stainless steel utensils of the kind used for household purposes wherein there is wear and tear because of their frequent use for the household purposes. In this case the notifications was issued for extending tax benefit to the class of goods. It is an exception carved out from the general taxing entry. Therefore, it has to be strictly construed. In case of such notification benefit of doubt, if any, has to be given to the Revenue in view of the judgment of the Supreme Court in the case of Novopan India Ltd. v. Collector of Central Excise and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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