MINERVA PRINTING WORKS Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS is a reference under section 33 (1) of the Bihar Sales Tax Act, 1959 (Bihar Act 19 of 1959), hereinafter called the Act, by the Commercial Taxes Tribunal, Bihar, on the following two questions of law :

(2.) THERE is a direct decision of the Allahabad High Court on the point at issue in the case of Industrial and Commercial Service, Allahabad v. Commissioner of Sales Tax ([1963] 14 S. T. C. 299 ). On a consideration of the meaning of the words "book" and "diary" given in three of the standard dictionaries, Desai, C. J. , gave a restricted meaning to the word "books" given in section 4 of the Act which was under consideration in that case. The learned Chief Justice further said that exercise books are books according to the wider meaning, but the State Government by including exercise books in the notification interpreted the word in a restricted sense so as not to include exercise books. Here also, while dealing with the second question of law, I would refer to another notification which includes exercise books and all other kinds of articles dealt with by the assessee. The term "book", therefore, given in the notification dated 1st July, 1959, has to be given a restricted meaning. The word "books" would thus mean a collection of sheets of papers written or printed, strung or bound together from which one may read and find instructions or lessons. It is clear that the intention of the Governor by the use of the word "book" in item 18 along with the word "periodical" was book as we understand them in a restricted sense. Periodicals and books are meant for reading purposes and to derive lessons from and gather informations. The exercise books or blank registers or letter-pads, etc. , cannot be called books. The argument before the Allahabad High Court was that diary was also a book. This argument was repelled. I am in respectful agreement with the principle of law decided by the Allahabad High Court and hold that the assessee's case is rather on a weaker footing than that of the case before the Allahabad High Court. It may also be added that exercise books were also added in this notification as item 29 on 15th May, 1964, by Notification No. STGL/rt-22/64-5700 F. T. In this case we are concerned with the period prior to that notification. This also explains that exercise books are not covered by the word "book" in item 18. That view taken by the Tribunal in this regard is correct and the first question of law referred to this court must be answered in favour of the Commercial Taxes Department and against the assessee.

(3.) THE Tribunal seems to be of the opinion that the various articles enumerated in the second column of the notification dated 27th August, 1959, if purchased from a dealer or a manufacturer and sold by the assessee as such, then and then only he is not liable to pay further special sales tax. The inclusive definition, according to the view of the Tribunal, must be confined to this aspect of the matter only. But, if the assessee had manufactured other articles from the paper purchased by it, then it cannot take advantage of this notification and must pay special sales tax in accordance with clause (b) mentioned in the third column. In my opinion, the Tribunal has committed a clear error of law in this regard. The various articles in the second column have not been enumerated separately as one distinct from the other. The use of the word "including" connotes that the other articles mentioned thereafter may not be paper in the dictionary sense or in the common parlance sense, or some of them may be so. But the use of the word "including" means that whether they are so or not, all articles enumerated after that word must be deemed to be paper for the purpose of the notification dated 27th August, 1959. That being so, it is clear to me that the assessee in this case purchased paper and sold paper within the meaning of the notification, although the articles sold were not paper in the strict sense of the term. That being so, it was not liable to pay any special sales tax on its own sales in regard to the various articles which are all included in the word "paper" in column 2 of the schedule annexed to the notification.