LexDEPUTY COMMISSIONER OF SALES TAX (LAW) BOARD OF REVENUE versus G. S. PAI & CO.
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DEPUTY COMMISSIONER OF SALES TAX (LAW)
BOARD OF REVENUE
v .
G. S. PAI & CO.
October 15, 1979
(P. N. BHAGWATI, V. D. TULZAPURKAR & R. S. PATHAK, JJ.]
Kera/a General Sales Tax Act 1963, First Schedule Entries 56 and 26A-
Scope of-Ornaments and articles of gold whether 'bullion and specie'-G.L
pipes whether 'water supply and sanitary fittings•.
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Words and phrases-'Bullion', 'specie' anti 'sanitary fittings' meaning of---
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Kerala General Sales Tax Act 1963, First Schedule Entries 56 and 26A.
lnterpreratton of Statutes-Erltries in Sales Tax Legislation-Interpretation·
of-Words used by legislature to be given their popular sense meaning.
Oil the questions ( 1) Wheth~ the ornaments and other articles of gold
purchased by the SBsessee fell within the description of "Bullion and specie"
given in Entry 56 in thp Frrst S<:hedule of the Kera!" General Sales Tax Act
1956 and (2) the taxability of the turn-over of sales of G.I. Pipes made by
the assessee.
HELD : 1. One cardinal rule of interpretation while inllerpretilig entries in·
Sal\18 Tax legislation is that the words used in the entries must be coostrued·
not in any technical senae nor from the scientific point of view but as under-
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stood in common parlance. The words used by the legislature must be given,
their popul"" sense meaning, "that S(On>e which people conversant with the
subject-matter with which ,the statute is dealing would attribute to it."
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[9~ H, 941A]
2. "Buijion" in its popular sense cannot includo ornaments or other articles
of gold.
"Bullion" according to its plain ordinary meaning means gold or-
silver in the -mass. It connotes gold Or silver regarded as raw materiBl and
it maiy be either in the form of raw gold: or silver or ingots or bars of gold'
or silver. [941 Bl
3. Ornament9' and oth'ir articles of gold cannot be regarded as ''bullion',.
because, even if old and antiquated, they are not raw or unwrought gold or
gold in the mass, but they represent manufactured or finished products of·
gold.
Nor do they come within the meaning of the ·expression "specie,,. The
word "specie" means coin, as distinguished from p{lper money". [941 D]
4. The ornaments and other articles of gold! purchased by the assessee do,
not fall within Entry 56 and tltey are, liable to be taxed not at the lesser rate
of 1 per cent applicable to "bullion and speicie" but at the general rate of
3 per cent under S. SA read with S. 5(i) (ii) of the Act. [941 G, 943 El
S. In State •Of Uttar Pradesh v. I~dian Hume Pipe Ltd., 39 STC 355 it has
lMlet1 held by this Court that 'sanitary fittings' according to the popular sense
of the term means such pipes or materials as are used in lavatories urinals.
or beth-rooms of private houses or public buildings. [942 CJ
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c. s. T. v. G. s. PAI & co. (Bhagwati, .J)
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6. The G.I. :Pipes sold by the assessee would fall within the description
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of 'sanitary fittings' only if it can b'e shown and the burden of so doing would
be on the Revenue,
tb~t they 'vere meant for use in lavatories, urinals or
bathMroow.
Th(~ attention of the assessee and the tax authoriti'es was not
drawn to this aspect of the question and no material was brought on record
which would tluow light on the question as to what was the use for which
the G.I. Pipes \{ere me2.nt. ·-If the G.I. Pipes were heavy and intended to
be faid underground for carrying supply of water from one place to another
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they would obvi,iusly not be 'sanitary fittings'. [942 C-E]
7. The tategc1ry of goods in Entry 26A is not described as 'water Supply
pipes, but as 'water supply and sanitary fittings'.
The words 'water supply ...
fittings~ do not occur ini isolation but they are in juxtaposition of the \Vords
·sanitary :fittings'.
The.· entire express.ion 'water supply and sanitary fittings'
is one single ·expression and the words 'water supply ... fittings' must receive
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colour from the immediately follo\ving words 'sanitary fittings'.
The expres-
sion· 'water supply . .... fittings' in the context in which it occurs means- such
pipes or materia:.s as are meant for use for supply of water to or in lavora-
tories, urinals or bath-room~ of private houses of public buildings
and
they
do not include heavy pipes which are laid underground as mains for carrying
water supply from one area or place to another. [942 G, 943 A-Bl
8. f\s far a• G.I. Pipes sold by the assessee are concerned the case re-
manded tExcerpt shown. Read the full judgment & AI analysis in Lexace.