Adopted statutory definitions cannot import foreign territorial limits; artificial silk fabric exemptions were not confined to Indian manufacture.

Entry 40 of Schedule I to the Gujarat Sales Tax Act, 1969, which adopted the definition of "rayon or artificial silk fabrics" from the Central Excises and Salt Act, had to be read on its own terms, without importing the excise law's territorial limitation. The word "manufactured" in the adopted definition was unqualified, so no requirement of manufacture in India could be read into it. On the same reasoning, entry 67 of the notification under section 49(2), referring to artificial silk fabrics, was also not confined to Indian-manufactured goods, and the exemption for dyed, bleached or printed fabrics applied without that restriction.

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Issues: (i) Whether entry 40 of Schedule I to the Gujarat Sales Tax Act, 1969 applied only to rayon or artificial silk fabrics manufactured in India. (ii) Whether entry 67 of the Government notification issued under section 49(2) of the Gujarat Sales Tax Act, 1969 was confined to artificial silk fabrics manufactured in India.

Issue (i): Whether entry 40 of Schedule I to the Gujarat Sales Tax Act, 1969 applied only to rayon or artificial silk fabrics manufactured in India.

Analysis: Entry 40 adopted only the definition of "rayon or artificial silk fabrics" from item 22 of the First Schedule to the Central Excises and Salt Act, 1944. The adopted definition had to be read on its own terms, and not by importing the charging provisions or the territorial limitation contained in the excise law. The word "manufactured" in the adopted definition was clear and unqualified, and there was no basis to read into it the words "in India". The sales tax enactment dealt with sale or purchase, not manufacture, so the excise-law condition was inapposite.

Conclusion: Entry 40 was not confined to fabrics manufactured in India. The assessee succeeded on this issue.

Issue (ii): Whether entry 67 of the Government notification issued under section 49(2) of the Gujarat Sales Tax Act, 1969 was confined to artificial silk fabrics manufactured in India.

Analysis: Even assuming that the expression "artificial silk fabrics" in entry 67 took its meaning from entry 40, the conclusion on the first issue meant that the adopted definition did not require manufacture in India. The same expression in the notification therefore could not be restricted to Indian-manufactured fabrics. The exemption for dyed, bleached or printed artificial silk fabrics was accordingly available without such territorial limitation.

Conclusion: Entry 67 was not restricted to artificial silk fabrics manufactured in India. The assessee succeeded on this issue as well.

Final Conclusion: The reference was answered in favour of the assessee on the substantive questions decided, and the exemption entries were held applicable without importing a manufacture-in-India requirement.

Ratio Decidendi: Where a statute adopts only the definition of an expression from another enactment, the adopted definition must be construed according to its plain terms and the unrelated charging or territorial provisions of the source enactment cannot be imported unless the adopted language is ambiguous.

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