TMI Blog2022 (2) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... it be restricted with reference to its user industry. That being the position, reference to the decision in K.P. Varghese (supraKP VARGHESE VERSUS INCOME-TAX OFFICER, ERNAKULAM, AND ANOTHER [ 1981 (9) TMI 1 - SUPREME COURT] remains entirely inapposite to the facts of the present case. Therein, this Court was dealing with the interpretation of the language of sub-section (2) of Section 52 of the Income Tax Act, 1961 and it was found that a literal interpretation might not cover several eventualities concerning the value of consideration declared by the assessee in respect of the transfer of a capital asset vis-a-vis its fair market value as on the date of its transfer - the observations in the said decision, based on the rules of interpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hank Yarn . 2. The learned Single Judge agreed with the interpretation put by the petitioner No. 1, essentially looking at the purpose for which the Entry in question was inserted into the Fourth Schedule to the Act, with reference to the Budget speech delivered by the Hon ble Minister of Finance, Government of Tamil Nadu. The learned Single Judge also referred to the reasons assigned by the petitioner No. 1 based on the contents of a Notification dated 17.04.2003 issued by the Ministry of Textiles, Government of India in exercise of powers conferred under the Textiles (Development and Regulations) Order, 2001 and Section 3 of the Essential Commodities Act, 1955. 3. Per contra, the Division Bench was of the view that no external aid f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould, depart from the plain language and modify the same so as to achieve the obvious intention of the Legislature. 7. We are unable to accept these submissions in the given set of facts concerning the present matter. 8. The Division Bench of the High Court has precisely pointed out the relevant Entries, as occurring in the First Schedule-Part B about the goods taxable at the rate of 5 per cent and juxtaposed them with the Exemption Entry, as occurring in the Fourth Schedule-Part B as follows: - The First Schedule Part-B - Goods which are taxable at the rate of 5 per cent). Sl. No. Description of the Goods Commodity Code Number 3 (a) Al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l expressed in clear terms of the Entry 44 itself. Nothing prevented the State from writing Entry 44 as 'Cotton Hank Yarn' or 'Hank yarn sold to Handloom Industries'. We cannot import external aids of interpretation where the plain meaning of the terms of the statute, namely the exemption Entry, is clear itself. The external aids for interpretation can be employed only if there is any ambiguity or confusion, but such external aids of interpretation cannot be applied to create a confusion or ambiguity unnecessarily. 10.1. As regards the import and effect of the Budget speech, the Division Bench of the High Court has again observed as under: - 33. Thus, in the light of the said Budget Speech also, there is nothing spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. 11. As noticed, the Entry in question, as inserted into the Fourth Schedule to the Act, is clear and specific that is, Hank Yarn ; it carries neither any ambiguity nor any confusion. Undoubtably, the yarn in the hank form (which is a unit of measure), has come for exemption under the said Entry 44; and obviously, that exemption enures to the benefit of the handloom industry too. However, for that matter, if the benefit of this broad and unambiguous entry also goes to any other industry, there is absolutely no reason to deny such benefit. In other words, we find no reason to restrict the Entry in its operation to the handloom industry alone or to any particular class of hank yarn like Cotton Hank Yarn only. The exemption Entry ..... X X X X Extracts X X X X X X X X Extracts X X X X
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