TaxTMI 
TaxTMI 
2011 (8) TMI 1024
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.... the Second Schedule of the Madhya Pradesh Commercial Tax Act, 1994 (hereinafter referred to as, "the 1994 Act") and under entry 14 of Schedule II of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as, "the Entry Tax Act"), so as to attract a higher rate of tax at ten per cent and two per cent, respectively. Facts necessary for determination of the aforesaid question briefly stated are that the petitioner-company is a pharmaceutical company registered under the provisions of the Companies Act, 1956. The petitioner-company deals in drugs and medicines and food supplements carrying brand names "GRD powder and GRD bix". The petitioner-company is registered as a dealer under the provisions....
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....tems sold by the petitioners are covered under entry 14 of Scheduled II of the Entry Tax Act. Being aggrieved by the aforesaid orders of assessment, the petitioners filed revision before the Additional Commissioner of Commercial Tax. The Additional Commissioner vide common order dated September 30, 2002 (annexure P/8) upheld the order of the assessment of the Assistant Commissioner. Shri H. S. Shrivastava, learned senior counsel appearing for the assessee. has argued that if the words employed in entry 20(ii) of Part IV of Schedule II of the 1994 Act are read in its entirety it is clear that beverage has to be in liquid form. He has also been argued that it is a well-settled principle of statutory interpretation that if certain words are u....
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....hat the relevant entries are broad and inclusive. In support of his submission, learned Additional Advocate-General has relied on the decisions reported in Collector of Central Excise, Bombay I v. Park Exports (P) Ltd. [1989] 75 STC 105 (SC) ; [1989] 1 SCC 345, Hamdard (Wakf) Laboratories v. Collector of Central Excise, Meerut [1999] 6 SCC 617, Pioma Industries v. State of Kerala [2008] 16 VST 468 (SC) ; [2008] 12 SCC 695, S. Samuel, M. D. Harrisons Malayalam v. Union of India [2003] 1 RC 971 ; [2004] 134 STC 610 (SC) ; [2004] 1 SCC 256. We have considered the submissions made on both sides. It is well established rule of statutory interpretation that a taxing statute has to be construed strictly. In this connection we reproduce the releva....
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.... ; it cannot import provisions in the statute so as to supply any assumed deficiency.' And K. Iyer, J., more recently observed : 'Taxation consideration may stem from administrative experience and other factors of life and not artistic visualization or neat logic and so the literal, though pedestrian interpretation must prevail.' Before taxing any person it must be shown that he falls within the ambit of the charging section by clear words used in the section. Therefore, if the words used are ambiguous and reasonably open to two interpretations benefit of interpretation is given to the subject." The question which arose for consideration before the Supreme Court in Com....
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....ear words for that purpose. (ii) The provisions of the Act must be read according to natural construction of its words. (iii) No tax can be imposed by inference or by analogy or by trying to probe into the intention of the Legislature. (iv) Before taxing any person, it must be shown that he falls within the ambit of charging section by clear words used in the section. (v) If certain words are used in the statute which are capable of construed in a popular sense, their common parlance meaning has to be taken into account. Now we may advert to the facts of the case. For facility of reference relevant entries are reproduced below:- "20. Commerc....
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.... In Random House Unabridged Dictionary, Second Edition, word "beverage" has been described to mean any potable liquid especially one other than water, as tea, coffee, beer or milk. In New English Dictionary and Thesaurus published by Geddes and Grosset, "beverage" is described a drink especially one other than water. Similarly Chambers 21st Century Dictionary, word "beverage" has been described a prepared drink especially a hot drink, i.e., tea or coffee or an alcoholic drink. In New Concise Oxford English Dictionary, 11th Edition, "beverage" is described as a drink other than water. Thus, the expression "beverage" as is commonly understood means any liquid other than water, which may be consumed neat or after dilution. Thus, the products ....