TaxTMI 
TaxTMI 
1996 (5) TMI 394
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....the opinion of this Court, arising out of its order dated January 13, 1988 passed in Appeal No. 93-IV/85: "Whether, under the facts and circumstances of the case, the Board of Revenue, was justified in holding that the "wool waste" is included in entry 39 of Schedule 1?" 2.. The non-applicant-assessee deals in manufacture and sale of woollen felts and components made up of wool waste. During the assessment year 1980-81, the non-applicant was assessed at Rs. 15,42,344 the total value of the goods purchased by him during the year. The assessee claimed deletion of Rs. 12,44,826 which, according to him, was the amount spent in purchasing tax-free goods like burs, noils and viscose, etc. The assessing officer (AO) disallowed the claim on t....
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....second appeal, the applicant-department made application under section 44(1) of the Act seeking reference to this Court. This is how the matter has come up before this Court for its opinion on the abovenoted question. 5.. We have heard Shri Surjit Singh, learned Government Advocate for the applicant-department and Shri S.C. Goyal, learned counsel for the non-applicant/ assessee. 6.. Learned Government Advocate contended that the entry No. 39 when construed strictly does not leave any room for construing "wool waste" as "raw wool". He pointed out that all other "woollen articles" not covered by the entry No. 39 are included in another entry No. 11 of Part 111 of Schedule 11 of the Act which, according to the learned counsel, is indicat....
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.... character, was groundnut oil with greater impurities. On a reference, the High Court, following Tungabhadra Industries Ltd. v. Commercial Tax Officer [1960] 11 STC 827 (SC), held that the residue, after going through the process of acids and chemicals, continued and remained to be groundnut oil and was taxable as such at one per cent. On appeal to the Supreme Court: Held, affirming the decision of the High Court, that the reasoning and conclusions reached by the High Court were correct." 7.. We have given our anxious thought to the rival contentions. We, however, do not feel persuaded by the arguments advanced on behalf of the assessee. 8.. It is well-settled that the taxing statute is to be strictly construed. Justice G.P. Singh ....
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....ever, be no doubt that exemptions made with a beneficient object, e.g., to give incentive to co-operative movement have to be liberally construed. Similarly when a provision is made permitting concessional rates of tax for the purpose of encouraging an industrial activity, the provision has to be liberally construed. So if the object of an exemption notification is to encourage the use of indigenous rice bran oil and to discourage the use of edible oils in soap manufacture, a narrow construction of the notification which defeats this object cannot be accepted and preference has to be given to a wider construction which promotes the object. As exemption provision cannot be denied full effect by a circuitous process of interpretation. But ....