Temporal wording in tax rule extended set-off benefit retrospectively for gold used in mangalsutra manufacture.

Rule 42-I of the Bombay Sales Tax Rules, 1959 concerned drawback, set-off or refund of purchase tax on goods used in manufacturing taxable goods. The 1992 amendment specifically included mangalsutra, while the words "for any period" were left unchanged. Applying the rule that every word in a statutory provision must be given effect and no expression treated as surplusage, the Bombay HC held that the retained temporal wording extended the benefit to an earlier assessment period. The assessee was therefore entitled to set-off of purchase tax on gold used in manufacturing mangalsutra for that prior period.

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Issues: Whether the amended rule 42-I of the Bombay Sales Tax Rules, 1959 entitled the assessee to set-off of purchase tax on gold used in manufacture of mangalsutra for an assessment period prior to the amendment, having regard to the words "for any period" retained in the rule.

Analysis: Rule 42-I, as it stood, granted drawback, set-off or refund of purchase tax under section 13AA on purchases of goods covered by Schedule C, Part I, when such goods were used in manufacture of taxable goods. By the 1992 amendment, mangalsutra covered by entry 30 of Schedule A was specifically inserted, but the phrase "for any period" remained unchanged. The Court applied the settled rule of construction that every word in a statute or rule must be given meaning and no expression should be treated as surplusage. Reading the amendment in that manner, the retained words "for any period" were held to extend the benefit to the assessment period even though the specific entry for mangalsutra was inserted later.

Conclusion: The amended rule 42-I applied to the prior assessment period and the assessee was entitled to set-off on gold used in the manufacture of mangalsutra; the question referred was answered in the negative and in favour of the assessee.

Ratio Decidendi: Where an amending rule retains broad temporal language such as "for any period", the amendment may operate to cover earlier assessment periods if that construction is necessary to give effect to every word and avoid rendering any part of the rule redundant.

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