LexCOMMISSIONER OF SALES TAX U.P. versus M/S. S. N. BROTHERS, KANPUR
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852 COMMISSIONER OF SALES TAX U.P. v. M/S. S. N. BROTHERS, KANPUR November 2, 1972 [P. JAGANMOHAN REDDY AND I. D. DUA, JJ.) U.P. Sales Tax Act (15 of 1948) s. 3 and Notification under s. 3A- Food colours' if 'dyes and colo1p·s' and 'Syrup essences' if 'scents and perfumes' Item 10 of the notification under s. ~A of U.P. Sales-tax Act, 1948, referred !<> 'dyes and c<>lours' and compositions thereof, and 'item 37 to 'scents and perfumes'. The respondent (dealer) imported from outside U.P., food colours and syrup essences. The appellant held that the food colours fell under item 10 of the notification and syrup essences under item 37 of the notification, and that !hey should be taxed at six paise per rupee under the Act. The dealer contended that the tax on fcod colours and syrup c'5ences should be at the rate of two paise p.er rupee as unclassified goods under s.3 of the Act. The High Court, in reference, agreed with the dealer's contention. Dismissing the appeal to this Court, HELD : The words 'dyes and colours' and the words 'scent and perfumes' have to be construed in their context and in the sense as ordi· narily understood and attributed to these words by people usually conversant with and dealing in such goods. Similar!}, the words 'food colours' and 'syrup c~scnc.cs', \\:hich arc descriptive of the class of goods, the ~ales of which are to be taxed under the Act, have to be construed in the sense in which they arc popularly understood by those who deol in them and \Vho purchase a:nd use them. 'Food colours' and 'syrup essences' arc edible goods, \vhcrcas 'dyes and colours' and 'scents and perfumes', as •pccified in entries 10 and 37, prima facie do not conrtota that they arc edible goods. The scheme of the list in the notification also suggests that, apa'rt from undoubted edible goods, in cases ,where the import of the specified goods is wide enough to include both edible and non-edible cate- gories, then the intention has hecn clearly expressed whether or not to• in~ elude edible goods. Therefore, <:~tries I 0 and 37 are not intended to ex- tend to cdiblq colours like 'food colours' and edible essences like 'syrup essences'. Jn any event, the view taken by the High Court is not so oro!Sly erroneous that it should be interfered with in a special Jcave appeal .... under Art. 136. [856 F-G; 858 D-E, F-H; 859 A-B] Sarin Clteniical Laboratory v. Comn1issioner of Sales tax [19701 26 S.T.C. 330, Rarnvattir Budh/prasad v. Assistant SafP.f Tax Offic<>r, Akof~. [1961] 12 S.T.C. 286. Commissioner of Sales Tax. M.P. Indore v. Jaswant Singh Charan Singh [1967] 19 S.T.C. 469 and Sales T<x Commissiona, U.P. v. Lnd/ia Sing/1 Mal Singh, [19-71] 28 S.T.C. 325 referred to. Kishan C/u,nd Che!laranz v. Joint Con1mercirrl Tax Officer Chintradripet, fl968] 21 S.T.C. 367 approved. CIVIL A QPELLATE JURISDICTION : Civil Appeal No. 2088 of 1969. Appeal by special leave from the judgment and order, dated April 3, 1969 of the Allahabad High Court in S. Y. R. No. 306 of 1967. A B c D F G II A B c D E F G H C.I.T. v. s. N. BROS. (Dua, J.) 853 S. C. M anchanda and 0. P. Rana for the appellants. A. K. Sen, K. P. Gupta and Champat Rai for the respondents. The Judgment of the Court was delivered by DuA, J .-This appeal by the Commissioner of Sales Tax, Uttar Pradesh is by special leave and is directed against the judg- mr-nt of the Allahabad High Court answering the following ques- tion in the negative in favour of the respondent (hereinafter called the dealer) and against the Commissioner of Sales Tax, appellant : "Whether the food colour and essence are under the circumstances items to be taxed under section 3A with- in the notification No. ST-905/X dated March 31, 1956 ?" The dealer carries on the business, inter alia, of selling food colours and syrup essences, The dealer also carries on the busi- ness of petroleum jelly but we are not concerned with that item in this appeal nor are we concerned with the sales of imported scents and perfumes which, according to the order of the Sales Tax Officer, were separately shown in the statement filed by the dealer, during the assessment proceedings for the year 1960-61. For the said year the Sales Tax Officer taxed food colours and syrup essences imported by the dealer from outside Uttar Pradesh under s. 3A of U.P. Sales Tax Act, 15 of 1948 (hereinafter called the Act) treating them as imported colou
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