TaxTMI 
TaxTMI 
1991 (5) TMI 245
X X X X Extracts X X X X
X X X X Extracts X X X X
....e (Sales Tax) Act, 1941, as extended to Delhi whereby gold ornaments were made exigible to sales tax at the rate of 2 per cent. The assessing authority came to the conclusion that this term "ornaments" has reference to those made of gold only. In case any stones, precious or otherwise are studded in ornaments, they, it was observed, can be treated as "jewellery" and not "ornaments". In doing so, the assessing authority relied upon its earlier decision for the assessment year 1968-69. The assessing officer mentioned in his order that in the year 1968-69 the assessee's sales were taxed at 5 per cent and appeal was rejected by the Assistant Commissioner hence the taxable sales shown by the dealer at 2 per cent will be taxed at the rate of 5 per cent. The controversy which arises in the instant case is rather narrow and a number of High Courts had occasion to examine the same question. Brief facts necessary to appreciate the controversy involved in the case are set out as under. The assessee has registration certificate No. 3749 under the Bengal Finance (Sales Tax) Act, 1941, as extended to the Union Territory of Delhi. In the assessment order for the assessment year 1969-70 the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... they are worn; and, we, therefore, constantly find them referred to in books written in the English language............." In Stroud's Judicial Dictionary (3), 5th Edition, page 1366, the words "jeweller's work" vis-a-vis the statute, Plate (Offences) Act, 1738, have been held to mean any gold or silver wherein any jewels or other stones are or shall be set. The word "jewellery" has been defined in the Random House Dictionary, unabridged edition, page 767. The meaning of the word, "jewellery" is given as under: "1. a number of articles of gold, silver, precious stones, etc., for personal adornment. 2.. any ornament for personal adornment, as a necklace, cufflinks, etc. including those of base metals, glass, plastic, or the like............" We are aware that dictionaries are not authoritative exponents of the terms used in a statute by Parliament. However, as Lord Coleridge said in R. v. Peters [1886] 16 QBD 636 (QB) at 641 "dictionaries are not to be taken as authoritative exponents of the meanings of words used in Acts of Parliament, but it is a well-known rule of courts of law that words should be taken to be used in their ordinary sense, and we are therefore, se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e word "jewelry" has been defined in different connotations in the United States of America: "The meaning of the word is most frequently drawn into question in cases involving the construction of statutes limiting the liability of innkeepers for money, jewelry, or valuables not deposited in the safe. In such a case it was said, 'The watch, and pen and pencil case are certainly valuables, and perhaps might be called jewels, but I think should be considered a part of the traveller's personal clothing or apparel. Gile v. Libby 36 Barb (N.Y.) 70, Ramaley v. Leland 43 N.Y. 539, 3 Am. Rep. 728, Bernstein v. Sweeny, 33 N.Y. Super. Ct. 271; but under a similar statute specifying money, jewellery, and articles of gold and silver manufacture, a gold watch was held to be included as an article of gold manufacture; Stewart v. Parsons, 24 Wis 241." The word "jewelry" has also been frequently used in the United States in tariff laws: "The meaning of the word is also frequently involved in cases arising under the tariff laws, which usually contain also the term 'imitation jewelry'. In such a case Lacombe, J., said: 'The word "jewelry" is generally used as including articles of persona....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilar question arose for consideration before various High Courts. A Division Bench of the Orissa High Court in State of Orissa v. Jamula Srirangam [1961] 12 STC 135, had clearly enunciated the meaning of the word "jewellery". The Court mentioned as under: "There may be an ornament consisting of pure gold set with imitation stones, or made of imitation gold set with imitation stones. Though there might have been some doubt prior to the issue of the aforesaid notification, as to whether an ornament made of imitation gold and set with imitation stones was jewellery or not, that doubt was set at rest by the aforesaid notification. In the present case, it is admitted that the ornaments were made of pure gold though set with imitation stones. That would bring them within the dictionary meaning of the expression "jewellery'." Similar question arose for consideration before a Division Bench of the Allahabad High Court in Ganeshi Lal and Sons v. Commissioner of Sales Tax [1971] 27 STC 150 and the court held as under: "The term ornaments used in the notification in question is, in our opinion, comprehensive and would include ornaments of all kinds including jewellery studded with pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th-tax v. Smt. Sonal K. Amin [1981] 127 ITR 427 (MP), has taken a contrary view. These judgments are clearly distinguishable. The assessee is fortified by the judgment of a Division Bench of this Court in Commissioner of Wealth-tax v. Smt. Savitri Devi [1983] 140 ITR 525 (Delhi) apart from the decision of the Allahabad and Gujarat High Courts. The Division Bench of this Court has carefully considered various dictionary meanings of the word "jewellery" and also considered a large number of cases. The court observed: "We feel that the word 'jewellery' as set out in the dictionaries as abovenoticed and as understood in common parlance, certainly includes gold ornaments. Gold ornaments made for personal use are almost always a jeweller's job and cannot be made by just anyone. A jewel itself is a costly ornament especially one made of gold, silver or precious stones. Precious stones are not a necessary ingredient to make a piece of jewellery. Exquisite filigree gold and silver jewellery is made in Orissa and other parts of the country and can certainly not be made by anyone other than an expert jeweller. " A Division Bench of this Court has dealt in detail the meaning of the....