TMI Blog1988 (9) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... om the plant, is an item entirely different from tobacco and does not fall within the expression 'tobacco or any form of tobacco'. Thus we affirm the view taken by the High Court and dismiss these appeals - 259 to 261 (NT) 177 and 2106 of 1987 - - - Dated:- 14-9-1988 - Sabyasachi Mukharji and S. Ranganathan, J.J. P.A. Choudhary, Senior Advocate (T.V.S.N. Chari and Mrs. Sunita Rao, Advocates, with him), for the respondents in all the matters. A.S. Nambiar, Senior Advocate (B. Parthasarathy, Advocate, with him), for the appellant in C.A. Nos. 259 to 261 of 1977. B. Kanta Rao, Advocate, for the petitioners in the writ petitioners and appellant in C.A. No. 2106 of 1987. [Judgment per: Ranganathan, J.]. - A common question is involved in all these matters which are, therefore, being disposed of by this common judgment. The question is whether tobacco seed oil and tobacco seed cake are entitled to exemption under the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as the 'Act'). The question arises in the following circumstances. 2. Section 8 of the Act confers an exemption from sales tax in respect of certain goods. It provides that: 'Subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods under the Central Excises and Salt Act, 1944 (hereinafter referred to as the '1944 Act'). The statement of objects and reasons of Act 58 of 1957 has been referred to before us and its short contents may be extracted here: 'The object of the bill is to impose additional duties of excise in replacement of the sales taxes levied by the Union and States on sugar, tobacco and mill-made textiles and to distribute the net proceeds of these taxes, except the proceeds attributable to Union territories, to the States. The distribution of proceeds of the additional duties broadly follows the pattern recommended by the Second Finance Commission. Provision has been made that the States which levy a tax on the sale or purchase of these commodities after the 1st April, 1958 do not participate in the distribution of the net proceeds. Provision is also being made in the Bill for including these three goods in the category of goods declared to be of special importance in inter-State trade or commerce so that, following the imposition of uniform duties of excise on them, the rates of sales tax, if levied by any State are subject from 1st April, 1958 to the restrictions in Section 15 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd category of manufactured tobacco is classified into various items like cigars and cheroots, cigarettes, biris, smoking mixtures for pipes and cigarettes and chewing tobacco of various kinds, snuff and hookah tobacco. 9. The question whether tobacco seed oil and tobacco cake fall within Entry 7 of Schedule IV to the Act, as amended, came up for consideration before a Division Bench of the same High Court (1977 - 40 S.T.C. 572). This Bench agreed with the conclusion of the earlier Division Bench, though not with its line of reasoning. It was of the view that the definition clause, properly interpreted in the light of the decision of the House of Lords in Dilworth v. Commissioners of Stamps 1899 A.C. 99 and C.I.T. v. Taj Mahal Hotel, 1971 -82 ITR 44 (S.C.), justified the inference that "tobacco seed" was not "tobacco" and that only leaf, stalks and stems of the tobacco plant could be said to be "tobacco" within the meaning of the definition in Item 4 of the Schedule to the 1944 Act. The Bench concluded : "Under these circumstances, it is obvious that the definition of the word "tobacco" according to item 4 of Schedule I to the Central Excises and Salt Act of 1944 does not bring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion, an interpretation clause, and must have been intended by the Legislature to be taken into account in construing the expression "charitable device or bequest", as it occurs in Section 3. It is not said in terms that "charitable bequest" shall mean one or other of the things which are enumerated, but that it shall "include" them. The word "include" is very generally used in interpretation clauses in other to enlarge the meaning of words or phrases occurring in the body of the statute; and when it is so used these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import, but also those things which the interpretation clause declares that they shall include. But the word "include" is susceptible of another construction, which may become imperative, if the context of the Act is sufficient to show that it was not merely employed for the purpose of adding to the natural significance of the words or expressions defined. It may be equivalent to "mean and include", and in that case it may afford an exhaustive explanation of the meaning which, for the purposes of the Act, must invariably be attached to these words or e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r words, the omission of the word 'seeds' from the second part of the definition casts its shadow on the first part as well. Indeed it rather looks as if the second part of the definition is intended to restrict rather than expand the scope of the first part. Thirdly, it is to be noticed that the first part of definition is somewhat restrictively worded. It could have said, for instance, that 'tobacco' means any part of the tobacco plant and includes its leaves, stalks and stems after the plant is severed from the earth. What it does say is, however, different. The present definition, when it says that tobacco means any form of tobacco lays emphasis that the item under consideration should be tobacco in form. The leaves, stalks and stems, even after drying, curing and other processes and even 'manufacture' retain the form of tobacco, as understood in common parlance. But it is otherwise with the seeds. They are not tobacco in form. They do not have the properties of tobacco. They are not used to exploit the narcotic qualities of tobacco. Apart from their use for seeding purposes, the seeds are only used for the manufacture of oil and cake. We are told that the oil is used as an ing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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