1974 (10) TMI 94

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... judgment of the court was delivered by SETH, J.-The petitioners carry on business of manufacture and sale of biscuits at Kanpur. By notifications dated 1st July, 1968, and 18th August, 1967, issued under the U.P. Sales Tax Act, cooked food, including sweetmeats and confectionery, other than sold in sealed or tinned containers, were made liable to sales tax at the rate of two per cent. For the ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....per cent. The petitioners alleged that their customers objected to the payment of tax at the enhanced rate as envisaged in the aforesaid notification. It was asserted that biscuit could not be treated as confectionery. The petitioners wrote a letter to the Sales Tax Officer concerned seeking clarification regarding the rate at which they should collect tax from their customers. It was also pointed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts and candy were made by moulding sugar, nuts and fruits of various kinds into fanciful forms. One of the main ingredients used for manufacturing confectionery is sugar. Confectionery is essentially a sweetmeat. In certain preparations, to the sweet base are added chocolate, fruits, nuts and peanuts, eggs, milk products, flavours and colours. In certain other preparations, like cakes and pastries....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssly and unambiguously imposed. What is relevant is not the dictionary meaning but how the entries are understood in common parlance specially in commercial circles. Applying that principle of construction we find it difficult to hold that biscuit would be included in the item "confectionery". The distinction between "confectionery" and "biscuit" was considered in Parry & Co. Ltd. v. Perry & Co....