Strict construction of tax exemptions bars treating khowa as curd under the sales tax schedule.

Undefined exemption entries in a taxing statute are construed strictly and according to their ordinary popular meaning unless the statute indicates otherwise. Applying that approach, the Madhya Pradesh HC held that khowa, a solid milk product obtained by boiling milk, is neither curd nor butter-milk in common understanding. The reference to an earlier enactment could not control the meaning of the later schedule entry. Khowa therefore did not fall within item No. 21 of Schedule I to the Madhya Pradesh General Sales Tax Act, 1958, and was not exempt from tax under that entry.

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Issues: Whether "khowa" falls within the word "curd" in item No. 21 of Schedule I to the Madhya Pradesh General Sales Tax Act, 1958, and is therefore exempt from tax.

Analysis: The expression used in the exemption entry had to be understood in its common parlance and popular sense, because the Act did not define the relevant words. An exemption provision must also be strictly construed, and the article claimed to be exempt must clearly fall within the language granting exemption. "Khowa" is a milk product obtained by boiling milk until it becomes a solid product; it is neither condensed milk, powdered milk, curd, nor butter-milk in ordinary understanding. Curd is a fermented coagulated milk product, and butter-milk is obtained from curd by churning with water. The reference to the earlier Act could not control the meaning of the later statutory entry.

Conclusion: "Khowa" does not fall within the meaning of "curd" in item No. 21 of Schedule I and is not exempt from tax under that entry.

Ratio Decidendi: Exemption entries in a taxing statute must be construed strictly, and undefined words in such entries are to be given their ordinary popular meaning unless the statute clearly indicates otherwise.

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