RAJASTHAN IRON AND STEEL MERCHANTS ASSOCIATION PVT LTD Vs. COMMERCIAL TAXES OFFICER SPECIAL CIRCLE-II JAIPUR

JUDGEMENT

(1.) ON a direction given by this Court, the Board of Revenue has sent the following question of law for the opinion of this Court : " Whether entry No. 23 of the Notification No. F. 5 (40)F. D. (R&t)63-XIII dated 2nd March, 1963, under the Rajasthan Sales Tax Act, 1954, and section 14 of the Central Sales Tax Act, 1956, covers G. P. and G. C. sheets within the term "iron and steel" when the petitioner purchases and sells these items in the same form in which it received them from the rolling mills ?" M/s. Rajasthan Iron and Steel Merchants Association (P.) Ltd. (hereinafter referred to as "the assessee") is a dealer in the business of sale of galvanised plain and corrugated sheets and galvanised wire purchased from M/s. Tata Iron and Steel Co. Ltd. or M/s. Hindustan Steel Ltd. The Commercial Taxes Department was treating such galvanised sheets and wires as "iron and steel" for sales tax purposes up to 31st December, 1963, and assessing such sales to tax at 2 per cent. The assessing authority started calculating sales tax at 6 per cent on items mentioned above from 1st January, 1964, in pursuance of a departmental clarification issued on the basis of an interpretation given by the Government of India that these would not come under the definition of "iron and steel" as defined under section 14 of the Central Sales Tax Act and as notified under the Government notification dated 2nd March, 1963. The Commercial Taxes Officer, Special Circle-II, Jaipur, while assessing sales tax for the assessment year 1963-64 held that from 1st January, 1964, onwards sale of G. P. sheets, G. C. sheets and G. I. wires attracted a general rate of sales tax at 6 per cent while prior to 1st January, 1964, sales tax was leviable at 2 per cent. An appeal filed by the assessee was dismissed by the Deputy Commissioner, Commercial Taxes (Appeals), Jaipur. The assessee than filed a revision application before the Board of Revenue. The Board of Revenue agreed with the contention of the assessee's counsel that the departmental circulars could not change the legal position which is governed by law and rules on the subject. The Board then examined the basic question whether G. P. and G. C. sheets and G. I. wires would fall under the category of "iron and steel" or not. If they fall under the category, then they will attract sales tax at the rate of 2 per cent but if they do not, then at the rate of 6 per cent. The Board of Revenue held that though corrugation was only a change in the shape of sheet, it did not really change the property of the matter, but in case of galvanisation the Board held that such a process where the entire metal area of the iron item is coated with another metal (zinc) there occurs a basic change in the nature and properties of the iron sheets or wires, and accordingly after this process of galvanisation they could not be strictly called merely items of "iron and steel". In view of this position, the Board of Revenue found that it had been rightly held that galvanised corrugated sheets or galvanised wires, no longer fall under the category of iron and steel under section 14 of the Central Sales Tax Act and as notified vide Government notification dated 2nd March, 1963. Thus, they attract sales tax at the rate of 6 per cent instead of 2 per cent.

(2.) THE Board of Revenue as regards the period earlier to 1st January, 1964, observed as under : " THEre is also the question as to why the higher rate should be levied from 1st January, 1964 and not for the earlier period. Once it is accepted that these items no longer fall under the category of iron and steel, the higher rate would be leviable for the relevant period, but we are prohibited from ordering its levy for the earlier period because that could be prejudicial to the assessee and we are barred from passing such order under section 14 (2) of the Rajasthan Sales Tax Act. "

(3.) THE quotation, given above, from Stroud's Judicial Dictionary shows that, ordinarily, the expression 'that is to say' is employed to make clear and fix the meaning of what is to be explained or defined. Such words are not used, as a rule, to amplify a meaning while removing a possible doubt for which purpose the word 'includes' is generally employed. In unusual cases, depending upon the context of the words 'that is to say', this expression may be followed by illustrative instances. In Megh Raj v. Allah Rakhia AIR 1947 PC 72, the words 'that is to say', with reference to a general category 'land' were held to introduce, 'the most general concept' when followed, inter alia, by the words 'right in or over land'. We think that the precise meaning of the words 'that is to say' must vary with the context. Where, as in Megh Raj's case AIR 1947 PC 72, the amplitude of legislative power to enact provisions with regard to 'land' and rights over it was meant to be indicated, the expression was given a wide scope because it came after the word 'land' and then followed 'rights over land' as an explanation of 'land'. Both were wide classes. THE object of using them for subject-matter of legislation, was obviously to lay down a wide power to legislate. But, in the context of single point sales tax, subject to special conditions when imposed on separate categories of specified goods, the expression was apparently meant to exhaustively enumerate the kinds of goods on a given list. THE purpose of an enumeration in a statute dealing with sales tax at a single point in a series of sales would, very naturally, be to indicate the types of goods each of which would constitute a separate class for a series of sales. Otherwise, the listing itself loses all meaning and would be without any purpose behind it.