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TMI Blog2004 (5) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act on the ground that besides manufacturing cycle tubes it has manufactured and sold super heavy duty rickshaw tubes for which, the dealer was not authorised under section 4B of the Act. Thus, the dealer has violated section 4B of the Act. In reply to the penalty notice the dealer-opposite party has placed reliance upon a notification No. S. T.-II7551/X dated December 31, 1976, issued under section 4B of the Act. In annexure III of the said notification, the notified goods are mentioned. Entry No. 1 is the relevant entry which reads as under: 1.. Bicycles, tricycles, perambulators, and accessories and parts thereof. Placing reliance upon the aforesaid notification it was submitted by the dealer that it is legally permissible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries of tax statutes, it has been held that the preference should be given to common parlance meaning than the one as defined in a dictionary. The commodity should be understood in the sense in which persons dealing with it understand. The Supreme Court has firmly ruled that in finding out to meaning of the entries mentioned in the Sales Tax Act, what is relevant is not dictionary meaning, but how those entries are understood in common parlance, specially in commercial circles. Sales tax primarily deal with the dealers who are engaged in commercial activity. Therefore, what is of the essence is to find out whether in commercial circles rickshaw is considered as identical with tricycle. In this connection, reference may be usefully made to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t;Commercial parlance theory" and has held that product cannot be called as medicine as it is neither prescribed by any doctor nor obtainable from the chemist of a chemist shop in the market. Para 5 of the said judgment reads as under: "5 It is well-established that in interpreting tariff entries in taxation statute like the Excise Act 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 scientific and technical meaning. The terms and expressions used in tariff have to be understood by their poplar meaning, that is the meaning that is attached to them by those using the product. See the decision of the Supreme Court on the disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an tyres and tubes". In Shanker Rubber Industries v. State of A.P. [1977] 39 STC 415 it has been held: " . . . There is a fundamental and essential difference between cycles and cycle rickshaws. In common parlance as also in commercial sense, they have come to assume different meanings. The designs of the two vehicles are different. The tyres and tubes used for cycle rickshaws are of a different variety and thicker make, which are not ordinarily used for cycles. The fact that the tyres and tubes used for cycle rickshaws could also be used by cyclists is not a ground for holding that cycle tyres and tubes are the same as cycle rickshaw tyres and tubes. The tyres and tubes of cycle rickshaws are manufactured having regard to the w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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