LexORIENT TRADERS versus COMMERCIAL TAX OFFICER, TIRUPATI
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A B [2008] 4 S.C.R. 810 ORIENT TRADERS V: COMMERCIAL TAX OFFICER, TIRUPATI (Civil Appeal No. 4491 of 2002) MARCH 12, 2008 [ASHOK BHAN AND DALVEER BHANDARI,· JJ.] · Andhra Pradesh General . Sales Tax Act, . 1957 - First Schedule Item 20 - G 0. Ms No. 1092 dated 31. 10. 1994 and . ' . c 252 dateq 19._5. 1995 reducing rate of sales tax from 2% to ~ · % on bullion and specie (gold) -Assessee, dealing in silver bullion claiming benefit under· the G. 0. for A Y 1994-1995 - Plea that reduced rate of sale tax under G 0. applicable to both gold and silver bullion and bracketed words 'gold' applies 0 only to specie and not to bullion -- Held: Not justified and tenable - There is no ambiguity in the expression used in the G.O. - Intention of State Government is clear that only gold bullion arid specie entitled to·concessional rate of tax- 'Bullion and specie' is one single phrase and canndt be bifurcated -1t E cannot be said that word 'gold' is referable to 'specie' only as it is mentioned after word 'specie' - Also benefit of G 0. Ms No. 625 dated 3f 7. 1996 omitting bracketed word 'gold' cannot be sought since G 0. was effective from 01. 08. 1996 - Hence, assessee not entitled to the benefit - Exemption Notifications G 0. Ms No. 1092 dated 31.10.1994, and G 0. Ms No. 252 F dated 19.5.1995. Interpretation of Statutes - Taxing statutes - Exemption Notifications - Construction of - Held: Are to be construed strictly - If intention of legislature is unambiguous, then courts G should not add words in exemption notification to extend the benefit to items not mentioned in the Notification. Under item 20 of the First Schedule of the Andhra Pradesh General Sales Tax Act, 1957 the bullion and specie are taxable at the rate of 2% with effect from H 810 • ORIENT TRADERS v. COMMERCIAL TAX OFFICER, 811 TIRUPATI [BHAN, J.] -r- 8.7.1983. By Notification in G.O. Ms. No. 1092 dated A 31.10.1994 rate of sales· tax was reduced on the sale of bullion and specie (gold) from 2% to %% net. Thereafter, the sales tax on bullion and specie was raised to 4% w.e.f. 01.04.1994. Again by Notification in G.O.Ms. No. 252 dated 19.5.1995 rate of sales tax on bullion and specie (gold) B was reduced to half percent. Subsequently by G.O.Ms No. 625 dated 31.7.1996 the expression 'gold' in the bracket immediately after the term 'gold and specie' occurring in the aforesaid G.O.'s was omitted. Appellant-dealer in silver bullion, filed return showing c a turnover of Rs. 14,33,01,470/- and paid% percent sales tax for the assessment year 1994-95. The Assessing Authority accepted the return. Theteafter, in view of the G. 0. Ms No. 1092 and 252, the Assessing Authority issued notice to the appellant for re-opening the assessment and D ,..J. bring the turnover to tax at the rate of 2%. Appellant ~ challenged the notice. High Court dismissed the writ petition on the ground of alternate remedy of filing the objections. Thereafter, appellant filed objections that the reduced rate of sale tax under the G. 0. was applicable E not only to gold bullion but also to silver bullion and that the bracketed words 'gold' used in the G. 0. applies only to specie and not to bullion. Assessing Officer rejected the objections and framed the re-assessment. Appellant .)( challenged the re-assessment by filing writ petition which • F was dismissed. Hence the present appeals. Dismissing the appeals, the Court HELD: 1.1 Entry 20 of the First Schedule of the the Andhra Pradesh General Sales Tax Act, 1957 refers to levy G of the tax at the point of first sale on bullion and specie. Explanation. I under the First Schedule provid.es the meaning of the expression 'bullion' as pure gold or silver and includes gold or silver mixed with copper, lead or any other kind of base metal. While issuing· Notification No. H 812 SUPREME COURT REPORTS [2008] 4 S.C.R. A 1092 dated 31.10.1994, the rate of tax was reduced· on the sale of bullion and specie (gold) from 2% to %% net. The Legislature used the term 'gold' in bracket after expression 'bullion and specie' thereby making its intention clear that it wanted to restrict the benefit of reduced rate of tax to B gold bullion and specie only and not to silver. Had the intention been to extend the benefit of reduced rate of tax . to silver bullion and specie, then, there was no need to put the word 'gold' in brackets after 'bullion and specie'. The submission that th
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