Classification of homoeo globules under VAT Act as "sugar made in India" entitles tax exemption. Literal interpretation favored.

The court held that homoeo globules are classified under Sl. No. 35A of the VAT Act as "sugar manufactured or made in India," entitling them to tax exemption. The court rejected the popular meaning theory, emphasizing the literal interpretation of the statute. The Tribunal's decision and Sales Tax Officer's memo were set aside, directing the assessing authority to follow the ruling. The judgment favored the assessee, emphasizing adherence to literal statutory language when ambiguity arises. Both judges concurred on the decision, with no costs awarded.

---

---

Issues Involved:
1. Classification of homoeo globules under the VAT Act.
2. Interpretation of the term "sugar manufactured or made in India" in Sl. No. 35A of Schedule A to the VAT Act.
3. Application of "popular meaning" versus "scientific or technical meaning" in tax classification.

Issue-wise Detailed Analysis:

1. Classification of Homoeo Globules under the VAT Act:
The primary issue was whether homoeo globules imported by the petitioner should be classified under Sl. No. 35A of Schedule A to the VAT Act as "sugar manufactured or made in India" or under the residuary entry in Schedule CA, subject to a 12.5% tax. The Sales Tax Officer's memo had classified the homoeo globules as an unspecified item under Schedule CA, leading to the dispute.

2. Interpretation of "Sugar Manufactured or Made in India":
The court examined whether homoeo globules, which contain sugar alone and are manufactured in India by purifying ordinary sugar to 99% purity, fall under the term "sugar manufactured or made in India" in Sl. No. 35A of Schedule A. The petitioner argued that the clear and unambiguous language of Sl. No. 35A should include homoeo globules since they are made of pure sugar. The court noted that under the West Bengal Sales Tax Act, 1954, and subsequently the VAT Act, "sugar" had been tax-free without any specific limitations or exclusions. The court concluded that the homoeo globules, being pure sugar, should be classified under Sl. No. 35A.

3. Application of "Popular Meaning" versus "Scientific or Technical Meaning":
The respondent argued that the Tribunal rightly relied on the popular meaning of sugar, citing the Supreme Court decision in Alpine Industries v. Collector of Central Excise, where "lip salve" was classified based on its popular use rather than its technical composition. However, the court distinguished this case, stating that homoeo globules are pure sugar in a different form and do not contain any additional materials. The court referenced the Supreme Court's ruling in the State of Gujarat v. Sakarwala Brothers, which held that the term "sugar" includes all forms of sugar, regardless of shape, texture, or name. The court also highlighted that the VAT Act explicitly describes some items by their popular names but does not do so for "sugar," indicating that the literal meaning should apply.

Conclusion:
The court set aside the Tribunal's order and the Sales Tax Officer's memo, holding that homoeo globules are entitled to the benefit of Sl. No. 35A for which no tax is payable. The court directed the assessing authority to act accordingly, emphasizing that when two views are possible, the one favoring the assessee should be adopted. The court concluded that the popular meaning theory is not tenable where the statute does not provide specific descriptions, and the literal meaning should be applied. The judgment was agreed upon by both judges, with no order as to costs.

---