LexSTATE OF WEST BENGAL & ORS. ETC. versus LAL CHAND AGARWALLA & ORS. ETC.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
STATE OF WEST BENGAL & ORS. ETC.
v.
A
LAL CHAND AGARWALLA & ORS. ETC.
"(
MARCH 24, 1987
'
i
[M.P. THAKKAR AND B.C. RAY, JJ.]
B
Taxes on Entry of Goods into Calcutta Metropolitan Area Act,
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1970 as amended in 1972 and 1974, section 6 read with Item 4 of
Schedule thereto-Exigibility to levy of Entry tax-Words and phrases-
"Groundnut", whether a "nut'' within the description of the specified
-,_.,.... •. goods under the head "Class I-Articles of food and drink-" Edibles"
attract levy of duty-In case the purpose of importer is to extract only oil c
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therefrom, whether exempt from the levy.
"-{'
Section 6 of the Taxes on Entry of Goods into Calcutta Metropoli-
tan Area Act, 1970 provides for imposition of levy and collection of
taxes on the entry of every specified goods into Calcutta Metropolitan D
Area (for consumption, use or sale therein) from any place outside that
area at such rate not exceeding the rates specified in the corresponding
entry in Column 3 of the Schedule as the State Government may by
notification specify. Class specifies articles liable to tax grouped nnder
the caption of food and drink. Item 4(t) specifies "nuts excluding beetal
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nuts" as one of the items on which the rate of entry tax has been E
specifically mentioned therein. Under the said Class-I in item No.4(u)
"oilman stores (except edible oils)" has beeu mentioned and iu Class-3
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under heading (b), item No. 22 refers to oil seeds of Inedible oils as one
of the specified items for imposition of tax.
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The respondeuts who are liceused dealers under the West Bengal F
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Edible Oil Seed Dealers Licensing Order, 1963 challenged the imposi·
lion of entry tax on gronndnuts imported into Calcntta Metropolitan
Area for the pnrpose of manufacture of gronndnut oil under the provi·
sions of the Taxes on Entry of Goods into Calcutta Metropolitan Area
Act, 1970 on the ground that such importation of groundnuts as oil
seeds is not subject to any levy under the provisions of the said Entry G
Tax Act in as much as there is no specific provision for levy on ground·
nuts as oil seeds for manufacturing edible oil. The respondents prayed
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for a mandate directing the appellants not to impose any entry tax on
the gronnd that they are edible nuts falling under specific entry of
edibles provided in the Schedule to the said Act, and with a further
prayer for refund of the taxes already imposed and collected by the
H
621
622
SUPREME COURT REPORTS
[1987] 2 S.C.R.
A
respondents. A learned Single Judge of the Calcutta High Court issued
a writ of mandamus as prayed for. The State appeal against the judg· -Y'
ment and order was dismissed and the judgment and order of the
learned Single Judge was affirmed. Hence the appeal by special leave.
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Allowing the appeals, the Court,
B
HELD: 1. On a plain reading of the provisions of the Taxes on
Entry of Goods into Calcutta Metropolitan Area Act, 1970, it is clear ¥:
and evident that groundnuts which answer the description of nuts is
excisable to entry tax under the said Act. Once the goods answer the
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description of the item exigihle to tax, under Item 4(1) the importer of
c such goods cannot escape liability depending on the use to which he
1'
pnts. No question of speculating about intention of the legislature arises
when "nuts" are in term specified as goods which are exigihle to tax rt
and "groundnuts" fall under the description of "nuts". That ground·
nuts are nuts is not disputed nor disputable that it is not so. Groundnuts
are "nuts" whether the same are consumed as they are or whether they are
D crushed for extracting oil-they do not cease to he nuts. {626E-H; 627A·B]
2. The legislative intent to tax nuts being very clear there is no
room for considering whether groundnut is also oil seed used for
manufacturing edible oil, "why" it is imported and whether it is ~
exempt from entry tax on that account. Undoubtedly, nuts include
E groundnut also. Though the 1970 Act was replaced by the Taxes on
Entry of Goods into Calcutta Metropolitan Area, 1972 making identical
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provisions for the imposition of entry tax on specified goods entering
into Calcutta Metropolitan Area, West Bengal Act XIX of 1974 specifi·
cally mentioned in Sl.No.4 item No. (u) for the words "nuts excluding
J,
betel nuts" the words "nuts inclnding groundnuts, casbewnuts and
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F
walnuts hut excluding betel nuts" shall be, and shall be deemed
always to have been substiExcerpt shown. Read the full judgment & AI analysis in Lexace.