ANNAPURNA BISCUIT MANUFACTURING CO., KANPUR versus COMMISSIONER OF SALES TAX, U.P., LUCKNOW

Citation: [1982] 1 S.C.R. 149 · Decided: 28-07-1981 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Dismissed

Judgment (excerpt)

) 
ANNAPURNA BISCUIT 
MANUFACTURING CO., KANPUR 
v. 
COMMISSION~ R OF SALES 
U.P., LUCKNOW 
July 28, 1981 
TAX, 
(R.S. PATHAK E.S. VENKATARAMIAH AND 
V. BALAKRISHNA ERADI, JJ.J 
149 
A 
8 
U.P. Sales Tax Act, 1948 (Act XV of 1948) and Notification dated 6th 
C 
OctoberJ 1971 issued under section J.A (2) of the Act providing for lower rate 
of Sales Tax at 2% of the turnover on "Pakaya Hua Bhojan" (q'tfi'M garr 
11)~)-Words and phrases-JVhether "biscuits" fall under "cooked food" 
( 'l''Pl'!T g-air 11T"f'f) 
Dismissing the appeal, the Court 
D 
HELD: I. In the context and background of the notification "biscuit" 
cannot be treated as "cooked food". In the Hindi text of the notification, issued 
contemporaneously with the English version, the words (qcpp::rr ~T -+ft\ifOf) 
were used as the equivalent for cooked food. Ordinarily biscuit is not under-
stood as "cooked food". Nor any one asking for some "cooked food" in a 
hotel will be served with "biscuits" in Uttar Pradesh. The item has_ been cor-
E 
rectly treated as''undassified commodity" and tax levied accordingly. [151F,G,H] 
Commissioner of Sales Tax v. Jassu Ram Bakery Dealer, 38 S.T.C. 461; 
Commissioner of Sales Tax i\fadhya Pradesh v. Shri Bailabhdas lswardas, 
21 S.T.C. 309, approved. 
2. It is a well settled rule of constru:::tion that the words used in a law 
F 
imposing a tax should be construed in the same way in \Vhich they are under-
stood in ordinary parlance in the area in which the law is in force. If an 
expression is capable of a wider meaning as w.:11 as narrower meaning the 
question whether the wider or the narrower meaning should be given depends 
on the context and the background of the case. [151 C-E] 
Hinde v. Alln1ond, 87 L.J. K.B. 893, quoted with approval. 
CIVIL 
APPELLATE 
JURISDICTION : Civil Appeal No. 3133 
of 1979 
G 
Appeal by special leave from the judgment and order dated the 
H 
30th July, 1979 of the Allahabad High Court in Sales Tax Revision 
No. 573 of l 979. 
B 
G 
D 
E 
F 
G 
H 
150 
SUPREME COURT REPORTS 
[1982] I S.C.R. 
G.L. Sanghi, Bharat Ji Aggarwal, Naresh Kumar Sharma and 
Vineet Kumar for the appellant. 
S.C. Manchanda and Mrs. Sobha Dixit for the respondent. 
The Judgment of the Court was delivered by 
VENKATARAMIAH, J. The short point for consideration in this 
appeal is whether the expression 'cooked food' used in certain 
notifications issued under the U.P. Sales Tax Act, 1948 (U.P. Act 
XV of 1948) (hereinafter referred to as 'the Act') can be construed 
as including within its meaning 'biscuits' also. 
The assessee, the appellant herein, is a registered firm engaged 
in the business of manufacture and sale of biscuits intended for 
human consumption. The assessee is a registered dealer under the 
Act. 
During the assessment proceedings under the Act for the year 
1972-73 the assessee claimed that the turn-over relating to biscuits 
manufactured and sold by it amounting to Rs. 35,09,920.38 P. was 
liable to be taxed at two per cent which was the rate prescribed by 
a notification issued by the State Government for cooked food 
contending that 'cooked food' :.included 'biscuits' also. 
The noti· 
fication relied on was one issued on October 6, 1971 under sub· 
section (2) of section 3-A of the Act in supersession of an earlier 
notification dated July 1, 1969. In both the notifications the tax 
was fixed at two per cent of the turn-over payable at all points of 
sale in the case of cooked food. The Assistant Commissioner (Tax 
Assessment) Sales Tax, Kanpur who was the assessing authority 
rejected the contention of the assessee that cooked food included 
biscuits also and imposed tax at the rate of three and a half per cent 
on the turn·over relating to biscuits treating the same ai an unclassi-
fied commodity. 
An appeal filed against the order of the assessing 
authority before the Deputy Commissioner Sales Tax and a further 
appeal before the Judge (Appeal) 
Sales 
Tax, Lucknow were 
unsuccessful. The High Court of Allahabad also declined to inter· 
fere with the said order. This appeal by special leave is filed against 
the order of the High Court under Article 136 of the Constitution. 
The only ground urged before us is that biscuits should have 
been treated by the authorities under the Act and by the High Court 
as cooked food and sales tax should have been levied on the turn-
over of biscuits at the rate prescribed in respect of cooked food 
under the notification referred to above. 
The argument urged 

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