Exemption entry interpretation: "exclusively" qualifies the dealer class, so a halwai keeps exemption despite other business activity.

The fiscal exemption entry was interpreted to mean that the word "exclusively" qualifies the class of dealer, not the articles sold. Sales by a halwai of goods ordinarily prepared by halwais therefore remained exempt even if the halwai also carried on another line of business. Applying the rule that taxing provisions must be construed strictly and ambiguity resolved in favour of the assessee, the contrary view in Deluxe Dhaba was overruled and the view in Shiv Ram was approved. The assessee was held entitled to the exemption under Entry 50 for the relevant period.

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Issues: Whether the word "exclusively" in Entry 50 of Schedule B to the Punjab General Sales Tax Act, 1948 qualifies the word "halwais" or the articles sold, and whether a halwai remains entitled to exemption when he also sells other goods.

Analysis: Entry 50 and Entry 72 are similarly framed tax-free entries intended to exempt specified goods when sold by the class of dealers named in the second column. On a plain reading, the word "exclusively" qualifies the dealer category and not the goods themselves. The exemption is therefore attached to sales by a halwai of articles ordinarily prepared by halwais, and it is not lost merely because the halwai also carries on some other line of business. In a taxing statute, words cannot be stretched against the taxpayer, and any ambiguity must be resolved in favour of the assessee. The contrary view in Deluxe Dhaba was held to be incorrect and was overruled, while the view in Shiv Ram was approved.

Conclusion: The assessee was entitled to the benefit of Entry 50 for the relevant period, and the question was answered in the affirmative in favour of the assessee and against the department.

Ratio Decidendi: In a fiscal exemption entry framed as goods sold by a specified class of dealers exclusively, the word "exclusively" qualifies the dealer class and not the goods, so the dealer does not lose exemption merely by also selling other goods.

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