TaxTMI 
TaxTMI 
2008 (8) TMI 834
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....ith regard to the exemption, but was not accepted on the short ground that the said packing material was not used as raw material in the manufacture of soap by the purchaser. The purchaser is carrying on the business of manufacturing soap. The packing material was used by the purchaser as wrapper. The assessing authority was of the view that under the said notification the purchases of only such goods would be exempted which are used by such institutions in the manufacture of goods. The packing paper has not been used in the manufacture of product, i.e., soap or in the manufacturing process, but was used for packing purposes. Therefore, it could not be exempted from purchase tax. The said order of the assessing authority is dated November 27, 1993 and has been confirmed in first appeal on June 7, 1994 and in second appeal by the Tribunal as well, by the order under revision. In the memo of revision, the following question has been sought to be raised: "Whether, on the facts and in the circumstances of the case, the Tribunal is legally justified in sustaining the order of the assessing authority, in disallowing the claim of exemption on the amount of Rs. 2,72,326 being the sal....
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....llage Industries Commission or the U.P. Khadi and Village Industries Board - (a) On the sale of products of village industries specified below; and (b) on the purchase of any goods connected with the manufacture of products of village industries or purchase of products of village industries specified below: LIST (1) to (3) . . . (4) Cottage soap industry On condition that the dealer selling such goods to the said institution furnishes a certificate from the said institution, duly countersigned by the District Village Industries Officer of the Uttar Pradesh Khadi and Village Industries Board, to the effect that the goods purchased by it are connected with the manufacture of products of the aforesaid village industries or are products of such village industries. It is not in dispute that in the list "cottage soap industry" is at Serial No. (4). It follows that soap is one of the products of village industries under the said notification. There is also no dispute that the dealer had furnished the requisite certificate, duly countersigned. In other words the dealer has fulfilled the conditions for grant of exemption, as provided for in the third column of the n....
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....al value. In my view the use of word "product" in the said notification and the object behind granting exemption to institutions in U.P. certified by the All India Khadi and Village Industries Commission or the Board or the U.P. Khadi and Village Industries Board is to promote the kutir udyog, i.e., handmade products. With a view to provide an edge to such manufacturers and to make their products competitive in the open market as compared to products manufactured with the help of sophisticated machinery, the Legislature has granted exemption to such products of Kutir Udyog by way of incentive. Keeping the above factors in the background of mind, the use of word "product " in manufacture of product and use of words "in connection with" instead of raw material which is generally used, in such facts situation in fiscal statutes, the insight of the notification is to grant exemption on such purchases which are used in the manufacture of goods and the object of the notification cannot achieve its goal without extending the benefit of exemption to such other materials like wrapper which are required by every manufacturer to make the goods/ products marketable and presentable in a well an....
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....tilizers Limited v. Deputy Commissioner of Commercial Taxes [1991] 83 STC 234 (SC) relied on in Amit Plastic Industry v. Divisional Level Committee [1995] 96 STC 538 (All), that a liberal and positive approach should be taken and the eligibility certificate should not be denied or cancelled on hyper-technical or narrow considerations. A statute is an edict of the Legislature and the conventional way of interpreting or construing a statute is to seek the "intention" of its maker. A statute is to be construed "according to the intent of them that make it" and "the duty of judicature" is to act upon the true intention of the Legislature (vide Salmond "Jurisprudence", 11th Edition, page 152). If a statutory provision is open to more than one interpretation the court has to choose that interpretation which represents the true intention of the Legislature. The problem of interpretation is a problem of meaning of words and their effectiveness as a medium of expression to communicate a particular thought. A word is used to refer to some object or situation in the real world and this object or situation has been assigned a technical name referent. "Words and phrases, are symbols that sti....
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.... soap in present economic scenario of the country, after globalization. Packing in the present context is concluding part of manufacturing. This world is governed more by appearances than by realities. So far as second question is concerned, the learned counsel has placed reliance on the following decisions: 1.. Commissioner of Sales Tax v. Phoolson Trading Corporation [1988] 69 STC 236 (All); [1987] UPTC 1033. 2.. Bharat Iron Stores v. Commissioner of Sales Tax [1994] UPTC 130. 3.. Gaurav Traders v. Commissioner of Sales Tax [1996] 9 NTN 262. In support of his contention that the dealer was entitled for grant of exemption from tax as the transaction was covered by the requisite certificate which has not been found to be incorrect or non-genuine one. On this point also, the dealer is entitled for exemption and no liability can be fastened on it in respect of the turnover of Rs. 3,72,326 which represents the purchases of M/s. Kundan Gramodyog Sansthan, Lucknow. The problem can be looked from another angle. So far as the dealer is concerned, it fulfils the conditions as prescribed in column 3 of the Notification No. 7037, already reproduced above. None ....