M VARADARAJULU NAIDU Vs. STATE OF MADRAS

JUDGEMENT

(1.) THIS batch of petitions raises the question whether cinder is included within the meaning of "coal, including coke in all its forms" which is item 1 of the Second schedule to the Madras General Sales Tax Act 1959. If it is a sale of coal or coke it will bear tax at the point of first sale in the State as provided by Section 4 of the act. I must say that I have not found it quite easy to find a solution for the question, but, have eventually come to the conclusion that the expression does not include cinder. I shall presently give my reasons.

(2.) IT will suffice to mention the facts in one of these batches as the point for decision in all of them is the same. In W. P. 1280 of 1965, the petitioner is a dealer in cinder ash at Madras. On his returns for January, February and March 1964, disclosing the turnover for each month in cinder, he claimed exemption on the ground that he was not a first dealer. The second respondent did not accept that view but proceeded to provisionally assess the petitioner on the basis that the sale of cinder were not entitled to the benefit of single point tax. The petitioner seeks for a rule of prohibition or other appropriate direction restraining the respondents from enforcing the demand make on him on 20-2-1965.

(3.) IN G. O. 3300 Revenue dated 24-8-1962, it seems the Government held the view that sales of cinder were within the entry and it would be subject only to single tax. But, in view of an order of the Madras Sales tax Appellate Tribunal, which had been made in the meantime, the Government changed its view with effect from 1-4-1963. The Tribunal had followed Mahabir Singh Ram Babu v. Asst. Sales Tax Officer, 1962-13 STC 248 (All), where Brijilal Gupta, J. with reference to an exemption of sales of coal from tax held that cinder was not coal and sale of cinder was not covered by tax exemption. This is on the ground that coal is a mineral as it is dug out of the bowels of the earth without anything more beings done to it while cinder is got only after a process of complete burning of coal and all combustible property of coal has escaped. With respect I am of the same view. See also Sales Tax Officer, 1962-13 STC 248 fletcher v. Fields, 1891-1 QB 790 and Madurai Municipality v. Rangaswami, 1958-1 Mad LJ (SN) 13. In the English case, which was under the metropolitan Streets Act, 1867 the learned Judges looked into the object of the statutory inhibition of loading and unloading coke on or across the footway between certain hours, and, expressed that coke was no more coal than cinders were.