Lignite treated as a distinct commodity from coal; sales tax restrictions for coal do not apply to lignite.

Lignite is treated as a distinct commodity from coal under the Gujarat Sales Tax Act, 1969, because the statute separately refers to lignite and the common or commercial parlance tests show it is not understood in trade as coal. Earlier departmental treatment carried little weight after insertion of the specific lignite entry, and scientific or technical descriptions were considered unhelpful in construing the taxing entry. References to mining legislation and the Coal Mines Act also supported separate treatment of coal and lignite. On that basis, sections 14 and 15 of the Central Sales Tax Act, 1956 do not restrict the tax levied on lignite under the Gujarat Sales Tax Act.

---

---

Issues: Whether lignite is coal for the purpose of entry 1, Schedule II, Part A of the Gujarat Sales Tax Act, 1969 and, if so, whether sections 14 and 15 of the Central Sales Tax Act, 1956 restrict the rate of tax on lignite.

Analysis: The entry relating specifically to lignite in the Gujarat Sales Tax Act showed that the commodity had been given separate treatment from coal. The earlier departmental determination treating lignite as coal was held to have little value because it predated the insertion of the specific lignite entry and could not prevent the Legislature from amending the statute. Applying the common parlance and commercial parlance tests, the Court held that lignite is understood in trade as a distinct commodity and not as coal. Scientific or technical descriptions and supporting literature were held to be of no assistance in interpreting a taxing entry. The Court also distinguished authorities dealing with coke, lignite-based products, or other commodities on the ground that those decisions concerned different statutory language or different goods. Reference was also made to mining legislation and the Coal Mines Act, both of which treated coal and lignite separately.

Conclusion: Lignite is not coal and sections 14 and 15 of the Central Sales Tax Act, 1956 do not restrict the tax levied on lignite under the Gujarat Sales Tax Act, 1969.

---