THE ADDITIONAL COMMISSIONER (LEGAL), COMMERCIAL TAXES, RAJASTHAN & ANR. versus M/S. LOHIYA AGENCIES & ANR.

Citation: [2019] 1 S.C.R. 130 · Decided: 08-01-2019 · Supreme Court of India · Bench: RANJAN GOGOI · Disposal: Dismissed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 1 S.C.R.
THE ADDITIONAL COMMISSIONER (LEGAL),
COMMERCIAL TAXES, RAJASTHAN & ANR.
v.
M/S. LOHIYA AGENCIES & ANR.
(Civil Appeal Nos. 180-186 of 2019)
JANUARY 08, 2019
[RANJAN GOGOI, SANJAY KISHAN KAUL AND
K. M. JOSEPH, JJ.]
Rajasthan Value Added Tax, 2003:
Schedule IV Entry 56 – ‘Gypsum Board’ – Whether would fall
within Entry 56 of Schedule IV and be taxed at 4% for the relevant
assessment years i.e. 2006-07 and 2007-08 or would fall under the
residuary Entry 1 of Schedule V – Held: Original Entry 56 was
expanded by legislature from ‘Gypsum’ to ‘Gypsum in all its forms’
– Addition of expression ‘in all its forms’ to the expression ‘Gypsum’ ,
should be construed to include different forms of gypsum and not
just gypsum in its original form – Therefore, amended Entry 56 of
Schedule IV would include ‘Gypsum Board’ under the term ‘all its
forms’ – Interpretation of Statutes – Notification No.F.12(63)FD/
Tax/2005-19, dated 19.4.2006 – Notification No. S.O.36.
No.F.12(59)FD/Tax/2014-14 dated 14.7.2014.
Dismissing the appeals, the Court
HELD: 1. The amended Entry 56 of Schedule IV of
Rajasthan Value Added Tax Act, 2003 (RVAT), read as ‘gypsum
in all its forms’, would include ‘gypsum board’ under the term
‘all its forms’. A meaning has to be given to the Entry made by
the legislature, expanding the original Entry from ‘gypsum’ to
‘gypsum in all its forms’.  If the object was to include only
‘gypsum’, then why would the Entry be changed to‘gypsum in all
its forms’? The corollary would also be as to what is meant by ‘in
all its forms’, as it is not, as if mere geometrical alteration of a
shape would form part of the Entry.  In such a situation, the original
Entry itself was comprehensive enough to have included it. [Paras
13 and 14][142-B-D]
[2019] 1 S.C.R. 130
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2. In the present case, there is really no chemical change
which occurs in the substance as dehydration only reduces the
water content and thereafter, it is mixed with additives for the
purpose of increasing bonding and other related purposes.
Substantively, the character of ‘gypsum’ is not changed in the
mechanical exercise of converting it into a board along with, of
course, certain chemical processes of heating and mixing, to
achieve an ultimate objective. [Para 14][142-E-F]
3. ‘Words must be construed with some imagination of the
purposes which lie behind them’. Therefore, the expression ‘in all
forms’ being added to ‘gypsum’ should be construed to naturally
include not only just gypsum in its original form but in different
forms as well. [Para 16][142-H; 143-A]
4. The manufacturing process of gypsum board would show
that the initial steps are of only crushing and grinding the gypsum
whereafter it is heated and partially dehydrated, which in turn is
called ‘stucco’ or ‘Plaster of Paris’.  There does not appear to be
any doubt that such ‘stucco’ would form part of the Entry ‘in all
its forms’.  The unique characteristic of stucco, when mixed with
water, is that the smooth plastic mass so formed can be molded
into the desired shape, which obtains its rock-like state on
hardening.  This very characteristic is stated to be used in the
development and production of gypsum board.  In the second
step of the manufacturing process, stucco is mixed with a number
of additives in an excess amount of water to prepare a slurry, to
be ultimately converted back into a dehydrated form, before being
cut into desired sizes.  Not only that, ‘gypsum board’ is defined
as real gypsum between two paper sheets. That take away from
the description of gypsum.  Even if the sheets are added, the
wide description ‘in all its forms’ would certainly include ‘gypsum
board’. [Para 17][143-B-D]
5. In fact, gypsum board, devoid of its top and bottom
boards, can be utilized, with some processing, in a similar manner
as gypsum.  When the meaning of the word ‘form’ is meant to
include ‘visible shape or configuration of something’, there is no
reason why gypsum board would not form a part of the expanded
terminology ’in all its forms’. [Para 18]
ADDL. COMMNR. (LEGAL), COMM. TAXES, RAJASTHAN v.
LOHIYA AGENCIES
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SUPREME COURT REPORTS
[2019] 1 S.C.R.
6. In terms of notification No.S.O.36.No.F.12(59)FD/Tax/
2014-14 dated 14th July, 2014, the RVAT was amended to include,
in Schedule V, a separate Entry under item No.19(viii) ‘gypsum
board and other false ceiling material’.  Thus, the legislature by a
conscious decision in

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