TaxTMI 
TaxTMI 
2013 (9) TMI 71
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....y action for realization of State Development Tax from the petitioner for the period April 2006 to November 2006. (iii) issue a suitable writ, order or direction in the nature of certiorari quashing the notices dated 6.10.2006 and 11.12.2006 (Annexure-8 and 10 to the petition) for the assessment year 2006-07 demanding State Development Tax for the period April 2006 to November 2006. (iv) issue any other suitable writ, order or direction, which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case." 3. The entry tax was levied in the relevant years, for which rebates in State Development Tax is claimed under the U.P. Tax on Entry of Goods Act 2000. In Indian Oil Corporation Ltd Vs. State of UP and others, reported in AIR 2004 Alld 277, this Court declared the Entry Tax levied by the U.P. Tax on Entry of Goods Act 2000 to be ultra vires, and violative of Articles 301, 304 (b) of the Constitution of India. In a Special Appeal filed against the judgement, an interim order was passed by the Supreme Court providing that 50 % of the due tax was to be paid, and for the balance 50 %, a bank guarantee was to be submitted. The Entry tax was imposed again....
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....ent in the public interest so to do, it may by notification, and subject to such conditions and restriction as may be specified therein, allow a rebate upto the full amount of tax levied on any specified point on: (a) the sale or purchase of any goods, or (b) the sale or purchase of such goods, by such person or class of persons as may be specified in the said notification (2) The rebate under sub-section (1) may be allowed with effect from a date prior to the date of the notification." 6. By a notification dated 28.04.2005, issued in exercise of powers under clause (d) of sub-section (4) of Section 3-H of the Uttar Pradesh Trade Tax, 1948, the Governor was pleased to notify that the State Development Tax shall not be leviable on the goods, on which trade tax rebate, is allowed to the full extent. The notification dated 28.04.2005, is quoted as below:- KA.NI-2-1307/XI-9(81)/91-U.P. Act-15-48-Order-(23)-2005 Lucknow : Dated: April 28, 2005 In exercise of the powers under clause (d) of sub-section (4) of Section 3-H of the Uttar Pradesh Trade Tax, 1948 (U.P. Act No. 15 of 1948), the Governor was pleased to specify that the State Development Tax shall not be leviable on the goo....
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....5, providing for exemption from State Development Tax, has to be given a strict interpretation. The State Development Tax is not leviable on the goods on certain conditions, and that in all the events, except event No. (ii), exemptions are provided by the State Government or by competent authority under delegated powers of State Government by way of recognition certificates or notifications. Under clause (iii) of the notification dated 28.4.2005, exemption from the State Development Tax is granted on the goods on which trade tax rebate is allowed to the full extent. The notification dated March 7, 2005, provides for rebate to the extent of the amount of tax paid by dealer on paper meant for writing, printing or packing purpose, excluding news print, under the Uttar Pradesh Tax on Entry of Goods Act, 2000, from the tax levied under the Uttar Pradesh Trade Tax Act 1948, on the sale of such paper subject to the conditions that:- (i) the amount of rebate shall not exceed the amount of trade tax paid; (ii) rebate shall be allowed only in relation to such paper on which Central Excise Duty has been paid. He submits that words 'a rebate to the extent of the amount of tax paid by deale....
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....counsel for the assessee is that the Notification providing exemption should be liberally construed having regard to the purpose and object it seeks to achieve. 26. The conditions for availing exemptions are generally laid down in the notifications granting exemptions. Sometimes, exemptions are grafted in the Rules framed in this behalf. In Crawford's Statutory Construction, it is stated that "Provisions" providing for an exemption may be properly construed strictly against the person who makes the claim of an exemption. In other words, before an exemption can be recognized, the person or property claimed to be exempted must come clearly within the language apparently granting the exemption. In our opinion, the principle to be kept in view while interpreting exemption notification is that the meaning of the words given in the exemption notification is to be gathered from the language employed in the notification. Notification by which exemption or other benefits are provided by the Govt. in exercise of its statutory powers normally have some purpose. Such purpose is not to be defeated nor those who may be entitled for it are to be deprived by interpreting the notification whic....
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....l established principle of law that whereas eligibility criteria laid down in an exemption notification are required to be construed strictly, once it is found that the applicant satisfies the same, the exemption notification should be construed liberally." (emphasis supplied) 14. In Commissioner of Central Excise Trichy Vs. Rukmani Pakkwell Traders [2011 (10) SCC 39], the Supreme Court held that exemption notifications have to be strictly construed. They must be interpreted on their own wording. Wordings of some other notification are of no benefit in construing a particular notification. To be entitled to the benefits of a notification, a person has to strictly comply with the conditions of that notification. If on a plain reading of the notification the benefit is not available then merely on the basis of principles applied in infringement cases, benefit cannot be claimed. 15. We may also seek the aid of the rule of 'ejusdem generis', which is a facet of the principle of 'noscitur a sociis' and has been applied by the Supreme Court in several cases, in interpreting particular words pertaining to a class, category and or genus followed by general words. In the &....
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....lly a wide meaning (when taken in isolation) are treated as reduced in scope by the verbal context." It may be regarded as an instance of ellipsis, or reliance on implication. This principle is presumed to apply unless there is some contrary indication (See Glanville Williams, `The Origins and Logical Implications of the Ejusdem Generis Rule' 7 Conv (NS) 119). 28. This ejusdem generis principle is a facet of the principle of Noscitur a sociis. The Latin maxim Noscitur a sociis contemplates that a statutory term is recognised by its associated words. The Latin word `sociis' means `society'. Therefore, when general words are juxtaposed with specific words, general words cannot be read in isolation. Their colour and their contents are to be derived from their context [See similar observations of Viscount Simonds in Attorney General v. Prince Ernest Augustus of Hanover, (1957) AC 436 at 461 of the report] xxx xxx xxx xxx xxx xxx 31. This Court while construing the principle of ejusdem generis laid down similar principles in the case of K.K. Kochuni v. State of Madras and Kerala, [AIR 1960 SC 1080]. A Constitution Bench of this Court in Kochuni (supra) speaking through Ju....