LexSTATE OF TAMIL NADU versus PYARE LAL MALHOTRA ETC.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
B
c
D
E
F
G
H
16 8
STATE OF TAMIL NADU
v.
PY ARE LAL MALHOTRA ETC.
January 19. 1976
[A. N. RAY, C.J., M. H. BEG, R. S. SARKARIA AND P. N. SHINGHAL, .TJ.]
Cp1.1:!·11l Sah:s Tr:x Act-Secs. 14-15-Tainil Nadu Sales Tax Act Sec. 2(j)--
Prvlubll101.1 Gf.fll!ltst 1_n1posi11g tax at n1ore than one stage-Whether all categories
aud sub
11cn1.~ of iron and ste·el to be treated as one conunodity-Words &
Fhra.H·s-Mea11i11;.: of "that is lo say."
l he respondents are dealers under the Tamil Nadu Sales Tax 1\ct.
Section
14 <?f t~e Central ~ale~ Tax Act declares certain goods enumerated therein of
spec1a~ importance 1n inter-state trade or commerce. The list of goods given
at scnal No. IV reads as under :-
(iv·) Iron and Steel, that is to s·ay-
(a) pig iron and iron scrap
{ b) iron plares solJ in the :-:ame fonn in which they are directly pro~
duced by the rolling mill;
( c) steel scrap, steel ingots, steel billets, steel bars and rods,
(d) (i) steel plates
l
(ii) steel sheets,
1
(iii) sheet bars and tin bars, j
(iv) rolled steel sections,
J
(v) tool alloy steel,
sold in the same form in which they
are dirtctly produced by the rolling
mill.
The said clause JV \vas amended by the Central Sales Tax Amendment Act,
Act 61 of 1972 by which certain more entries were added.
Section 15 of the Central Sales Tax Act provides that the tax payable under
a St<lre Law on sale or purchase of declared goods shall not be levied at more
lh~n vnc stage.
Respondents used to purchase iron scrap and thereafter used to convert them
into :.teel rounds, flats, plates etc.
The scrap was already subject to tax once.
The respondents contended that the entry Iron & Steel was wide enough
to
ii'1clude scrap as well as the steel rounds, flats, plates, etc. made out of the scrap
which wa~ subject to t;:ix once and that, therefore, the sale of the steel rounds,
flats, plates, etc., c1nnot be subjected to tax again under the Tamil Nadu Sales Tax
AcL The High Court accepted the ,contention of the respondents.
J\llowing an appeal by certificate,
HELD : I. The intention was to consider each sub-item in clause IV as a
separate taxable commcxlity for purposes of sales tax.
The object was not to
lay down that all the categories or sub-items of goods specified separately were
to be viewed as a single saleable commodity called iron and steel for purposes
of determining a starting point for a series of sales. The note against sub-
division of Clause IV makes it dear that even each sub-category of a sub-iten1
retains. its identity as a commercially separate item for purposes of sales tax so
long as it retains the sub-division.
f171G, 172B-Cl
2.
The eXpression 'that is to say' is en1ployed to make it clear and fix the
meaning of words to be explained or defined. Such words are not used, as
a rule, to amplify a meaning while removing a possible doubt for which purpose
the word 'includes' is generally employed. The precise meaning of the words
•
•
TAMIL NADU V. P. L. MALHOTRA (Beg, J.)
169
~that is to say' must vary with the context. The purpos.e of the expression in a sales
tax law would be to indicate the types of goods each of which would constitute
a separate class for a series of sales.
ll72f-H, 173B]
3.
The chemical composition of iron and steel, cannot afford a clue to the
meaning of iron and steel.
Sales Tax Law taxes sales of goods and is not a
.taxation on sales of substance out of which goods are made.
We prefer to
follow the more natural and normal inter_pretation which follows plainly from
A
the fact of separate specification numbering of each item.
State of
Madhya
B
Prade.~h v. Hira Lal; (1966) 17 STC 313-315 distinguished. The case of Devidas
applied. fl 7JC. E~Fl
4.
It has not been shown to, us that any provision of the Tarnilnadu Sales
Tax Act violates section 15 of the Central Sales Tax Act enacted in accordance
with Article 286(3) of the Constitution.
Section 2(j) of the Tamil Nadu Act
-defines J:?.Oods and section 4 imposes charge in respect of tax on declared goods.
The Tamilnadu Act borrows clause (IV) of sectio11 14 of the Central Sales Tax
Act.
[176 C-HJ
C
CIVIL APPELLATE JURISDICTION : Civil Appeals Nos. 58-59 and
880-883 of 1971.
From the Judgment and Order dated 10-4-1970 of the Madras
High Court in Writ Petition Nos. 437 /67 and 520/68 and Tax
Cases Nos. 135-138 of 1970 respectively.
P. Ram Reddy, A. V. Rangam and Miss A. Subhashini, for
the
AppelExcerpt shown. Read the full judgment & AI analysis in Lexace.