1983 (2) TMI 268 - HC - VAT and Sales Tax

High Court rules sandalwood not perfume under Bombay Sales Tax Act, 1959. Assessee prevails.

The High Court held that neither sandalwood nor sandalwood oil are considered perfumes under entry 19 of Schedule E to the Bombay Sales Tax Act, 1959. The ... - Issues Involved:1. Interpretation of entry 19 of Schedule E to the Bombay Sales Tax Act, 1959, regarding whether 'sandalwood' is a perfume.2. Interpretation of entry 19 of Schedule E to the Bombay Sales Tax Act, 1959, regarding whether 'sandalwood oil' is a perfume.Summary:Issue 1: Whether 'sandalwood' is a perfume within the meaning of entry 19 of Schedule E to the Bombay Sales Tax Act, 1959.The respondents, M/s. Gordhandas Tokersey, contended that sandalwood should fall under the residuary entry 22 of Schedule E. The Commissioner of Sales Tax initially held that sandalwood was a perfume under entry 19. The Tribunal, however, concluded that sandalwood was not covered by entry 19 and should fall under the residuary entry 22. The High Court examined the dictionary definition of 'perfume' and applied the rule of noscitur a sociis, determining that 'perfumes' in entry 19 must be construed in conjunction with cosmetics and depilatories, referring to articles used in personal toilet. The court found no evidence that sandalwood is used or known in the trade as a perfume. Therefore, it concluded that sandalwood is not a perfume within the meaning of entry 19.Issue 2: Whether 'sandalwood oil' is a perfume within the meaning of entry 19 of Schedule E to the Bombay Sales Tax Act, 1959.The respondents argued that sandalwood oil should also fall under the residuary entry 22. The Commissioner of Sales Tax initially held that sandalwood oil was a perfume under entry 19. The Tribunal concluded that sandalwood oil was not covered by entry 19 and should fall under the residuary entry 22. The High Court considered the use of sandalwood oil as a fixative in the preparation of perfumes and its use in ayurvedic medicinal preparations. The court noted that sandalwood oil is not used in personal toilet or for beautification of the body as perfumes. Thus, it concluded that sandalwood oil is not a perfume within the meaning of entry 19.Conclusion:The High Court answered both questions in the affirmative, in favor of the assessee and against the department. The court held that neither sandalwood nor sandalwood oil are covered by entry 19 of Schedule E of the Bombay Sales Tax Act, 1959. The applicants were ordered to pay the respondents' costs of these references, fixed at Rs. 300.