STATE OF GUJARAT Vs. MAHAVIR OIL MILLS

JUDGEMENT

(1.) THE question which has been referred to us for our opinion is as under : " Whether on the facts and in the circumstances of the case, the bhinda (lady's finger) seeds purchased by the opponent-mill are oil-seeds covered by entry 6, Part II, of Schedule B to the Bombay Sales Tax Act, 1959, or are covered by the residuary entry 22 of Schedule A to the said Act ?"

(2.) THE question has been referred to us in the following circumstances : THE opponent herein is an oil mill manufacturing edible and non-edible oils and is registered under the Bombay Sales Tax Act, 1959. It was assessed for S. Y. 2020 corresponding to 18th October, 1963, to 4th November, 1964. During the said period it purchased bhinda seeds for Rs. 23,741 for purposes of manufacturing oil out of seeds. THE Sales Tax Officer concerned held that the seeds purchased by the opponent-mill were oil-seeds and should be subjected to tax accordingly under entry 6, Part II, of Schedule B to the aforesaid Act. THE opponent-mill, therefore, took the matter in appeal before the Assistant Commissioner of Sales Tax. THE contention before the Commissioner was that the bhinda seeds purchased by the opponent-mill were vegetable seeds covered by entry 22 of Schedule A to the aforesaid Act and as such not liable to tax. This contention did not find favour with the Assistant Commissioner, who confirmed the order of the Sales Tax Officer and held that bhinda seeds were liable to tax under entry 6, Part II, of Schedule B to the Act. THE opponent-mill, therefore, went in second appeal before the Tribunal. Both the contentions, namely, that the bhinda seeds were vegetable seeds within entry 22 of Schedule A and, secondly, they could not be considered to be oil-seeds liable to tax under entry 6, Part II, of Schedule B were raised. THE Tribunal after referring to the scheme of Schedule A and the relevant entries thereto, namely, entries 22, 23, 25 and 26, held that the expression "vegetable seeds" in entry 22 of Schedule A meant such vegetable seeds which are capable of being sown and actually required for use for such purposes. THE Tribunal then proceeded to consider the facts relating to the purchase of seeds by the opponent-mill and came to the conclusion that bhinda seeds purchased by the opponent-mill were not vegetable seeds as covered under entry 22. On the second contention, whether the seeds were oil-seeds or not, the Tribunal, after referring to the decisions of various High Courts, was of opinion that the meaning which should be attributed to the term "oil-seeds" should be the meaning as attributed under the common parlance. In the opinion of the Tribunal, applying that test, bhinda seeds should not be understood as "oil-seeds". In that view of the matter, therefore, the Tribunal allowed the appeal of the opponent-mill. At the instance of the State, the aforesaid question has been referred to us.

(3.) IN Commissioner of INcome-tax, Andhra Pradesh v. M/s. Taj Mahal Hotel, Secunderabad ([1972] 82 I. T. R. 44 (S. C.); AIR 1972 SC 168), a question arose before the Supreme Court, whether sanitary fittings in a bath room are essential amenities or conveniences which are normally provided in any good hotel in the modern days and would be included in the term "plant" in section 10 (5) of the INcome-tax Act, 1922. The court held that sanitary fittings are included in the word "plant" as the definition thereof clearly indicated that wides possible meaning should be given to the same. IN that context it has been held that where a statute gives a definition of the word, it must not be construed in its popular sense. Mr. Justice Grover (as he then was) speaking for the court observed in paragraph 6 of the judgment as under : " Now it is well-settled that where the definition of a word has not been given, it must be construed in its popular sense, if it is a word of every day use. Popular sense means 'that sense which people coversant with the subject-matter with which the statute is dealing would attribute to it'. . . . . "