STATE OF ANDHRA PRADESH Vs. HAMPKO ENTERPRISES

JUDGEMENT

(1.) THE only question in these tax revision cases is whether the expression "paper" occurring in G. O. Ms. No. 206, Revenue, dated 1st February, 1961, hereinafter referred to as "exemption G. O. " includes "paper board" ? The assessment years concerned herein are 1975-76 and 1976-77. Prior to 1st September, 1976, there was no independent entry in any of the Schedules relating to "paper". With effect from the said date entry 143 was inserted in the First Schedule. The entry reads as follows :

(2.) FOR the two assessment years concerned herein, it was held by the assessing authority that "paper board" is not included within the expression "paper" used in G. O. Ms. No. 206, Revenue, dated 1st February, 1961. The Tribunal, however, has taken a contrary view which, in our opinion, is correct. This is evident not only from the language employed in entry 143, but also from the clarification issued by the Government itself, referred to above. Firstly, the aforesaid memo being clarificatory in nature, would govern even the previous assessment years. But even if we say that the said clarification does not apply to assessment years prior to the said memo, even then the said expression has to be given a proper meaning, having regard to the context in which it is used, and the purpose which was sought to be served by the said G. O. Evidently, the said G. O. was issued with a view to encourage the manufacture of "handmade paper". The expression "paper" has a wide meaning, which is evident from the very entry 143. It would, therefore, be proper and appropriate to hold that "paperboard" falls within the expression "paper" as employed in G. O. Ms. No. 206. The Tribunal was, therefore, right in the view it took. It may also be noticed that after the insertion of entry 143, the exemption G. O. , G. O. Ms. No. 206 would be relatable to the said entry alone. If so, it may probably be just and proper to understand the expression "paper" in G. O. Ms. No. 206 in the sence in which "paper" is referred to in entry 143. We, however, desist from expressing any final opinion on this aspect.