1973 (3) TMI 127 - HC - VAT and Sales Tax

Dressed chicken qualifies as meat under tax law, exempt from sales tax liability

The court ruled in favor of the petitioner, determining that dressed chicken qualifies as meat under the Bengal Finance (Sales Tax) Act, 1941. The judge ... - Issues:Interpretation of whether dressed chicken qualifies as meat under the Bengal Finance (Sales Tax) Act, 1941.Analysis:The judgment revolves around the interpretation of whether dressed chicken falls under the definition of meat as per item No. 4 of Schedule I of the Bengal Finance (Sales Tax) Act, 1941. The petitioner argued that dressed chicken should be considered meat, citing a Bombay High Court case where dressed poultry was deemed to be included in the broader definition of meat. The judge concurred with this interpretation, emphasizing that meat, in its wider connotation, encompasses dressed poultry. Additionally, the judge noted that dictionaries define meat as the flesh of animals used as food, which includes poultry. The respondent, however, disagreed with the Bombay High Court's decision, arguing that dressed chicken should not be exempt from sales tax as it is commonly known as white meat. The judge rejected this argument, stating that even in common parlance, dressed chicken qualifies as meat, especially considering its categorization as white meat.Regarding legal precedents, the respondent referred to cases where the Supreme Court clarified that certain items must be interpreted in their popular sense rather than technically. The judge applied this reasoning to the current case, asserting that dressed chicken should be considered meat based on common understanding. Consequently, the judge ruled in favor of the petitioner, stating that dressed chicken is covered under item No. 4 of Schedule I of the Bengal Finance (Sales Tax) Act, 1941. As a result, the assessment concerning dressed chicken was deemed erroneous and ordered to be modified by the Commercial Tax Officer accordingly.In conclusion, the judgment clarifies that dressed chicken qualifies as meat under the Bengal Finance (Sales Tax) Act, 1941, based on both common understanding and legal interpretation. The decision emphasizes the broader connotation of the term 'meat' to include dressed poultry, ultimately leading to the exemption of dressed chicken from sales tax liability.