COMMISSIONER OF TRADE TAX, U.P. versus M/S. KARTOS INTERNATIONAL ETC.

Citation: [2011] 4 S.C.R. 263 · Decided: 06-04-2011 · Supreme Court of India · Bench: MUKUNDAKAM SHARMA · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2011] 4 S.C.R. 263 
, 
COMMISSIONER OF TRADE TAX, U.P. 
A 
v. 
M/S. KARTOS INTERNATIONAL ETC. 
(Civil Appeal Nos.2983-2988 of 2011) 
APRIL 6, 2011 
B 
[DR. MUKUNDAKAM SHARMA AND 
ANIL R. DAVE, JJ.] 
Uttar Pradesh Trade Tax Act, 1948: Notification dated 
10.4.2000 - Exemption under - Scientific and biological c 
equipments/instruments used mainly by biological scientists 
for research purpose ~ The said articles manufactured and 
sold to hospitals, medical colleges, advance research 
institutions and laboratories - Held: The equipments would 
not be entitled to benefit of exemption under the said D 
Notification - These equipments fall in the category of 
"Biological Instruments" and are outside the purview of . 
"Biology instruments" which are to be used by students in 
schools and colleges - All the goods mentioned in the entry 
of notification relate to articles used for study of life science 
E 
in schools and colleges, such as, maps, educational charts, 
scientific mathematical survey, mechanical drawing and 
biology instruments and appar~tus - All of them belong to 
one class as they are the tools for teaming biology and other 
life science - Applying the doctrine of Nositur a Sociis and 
F 
also ,an considering the intention of the Government for 
issuing the notification granting exemption for teaming life 
science, it is established that no exemption was desired for 
the articlesm.anufactured and sold by the,assessee but it was 
meant exclusively for use by the students of schools and G 
colleges - Doctrines/Principles. 
Doctrines/Principles: Nositur a Sociis - Meaning of. 
Tax/Taxation: Classification of goods. - Basis of - Held: 
263 
H 
. 264 
SUPREME COURT REPORTS 
(2011) 4 S.C.R. 
A The classification of any commodity cannot be made on its 
scientific and technical meaning - It is only the common 
parlance meaning of the term which should be taken into 
consideration for the purpose of determining the tax liability 
- Uttar Pradesh Trade Tax Act, 1948. 
B 
The assessee-respondent was engaged In the 
manufacture and sale of various "scientific and biological 
equipments/instruments which were used mainly by 
biological scientists for research purposes for which the 
assessee was duly registered under the provisions of 
C U.P. Trade Tax Act, 1948 as well as the Central Sales Tax 
Act, 1956. The articles manufactured and sold by the 
respondent were Biological Safety Cabinets; Laminar 
Flow Cabinets; Fume Hoods; Air Showers; Operation 
Theatre Modules; Air Curtains; Air Conditioner Modules; 
D Clean Tents; Clean Room Garments; Pass Boxes; Air 
Handling, Filter etc. These articles were sold by the 
respondent to Hospitals, Medical Colleges, Advance 
Research Institutions and Laboratories. 
The question which arose for consideration In the 
E Instant appeals filed by the Revenue was whether the 
scientific and blologlcal Instruments/equipments 
manufactured by the assessee were entitled to exemption 
under notification no.1166 dated 10.4.2000. 
F 
Allowing the appeals, the Court 
HELD: 1. The fact that the assessee himself never 
treated the goods as exempted goods and treated them 
as taxable goods under Section 3-A (1}(C} of the U.P 
Trade Tax Act as unclassified goods and charged full rate 
G of tax would make It clear that even the assessee was 
aware of the fact that the goods did not fcftl within ambit 
of the notification dated 10.4.2000. [Para 20] [272-H; 273-
A-B] 
' 
H 
2.1. The Hindi version of the Notification dated 
COMMISSIONER OF TRADE TAX, U.P. v. KARTOS 
265 
INTERNATIONAL ETC. 
10.4.2000 is "Jeev Vigyan Sammandhi Upkaranikayen 
A 
Aur Sanyantra". That means the instruments which are 
used for the study of Life Science (Jeev Vigyan) ·by 
students in educational institutions. The various articles 
manufactured and sold by the respondent were not 
meant for teaching Life Science (Jeev Vigyan). They were 
B 
meant for Hospital, Medical Colleges and Research 
Laboratories which may fall in the category of "Biological 
Instruments" and are outside the purview of "Biology 
Instruments" to be used by ·the students in educational 
institutions. The classification of any commodity cannot c 
be made on its scientific and technical meaning. It is only 
the common parlance meaning of the term which should 
be taken Into consideration for the purpose of 
determining the tax liability. (Paras 22, 23) [273-D-G) 
Maharashtra University of Health Sciences v. Satchikitsa D 
Prasarak Manda/ (2010) 3 SCC 786; R

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