AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (5) TMI 104
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....Revisional Authority, Rohtak, holding that as Hookas are not "utensils", sales tax would be charged, under the entry relating to general trade. The petitioner is engaged in the business of manufacture and sale of brass/ iron Hookas and their parts. The State of Haryana, issued a notification, dated 18.03.1988, prescribing a rate of 3 paise in a rupee on sale of ferrous and non ferrous metal utensils including brass utensils. The petitioner deposited sales tax at three paise in a rupee by treating Hookas as utensils and accordingly filed a return for assessment year 1989-90, which was accepted by the Assessing Officer. However, for the next assessment year, the Assessing Officer, vide order dated 30.12.1992 held that Hookas are not utensi....
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....ana has notified that ferrous and non-ferrous metal "utensils", including pressure cookers would invite sales tax at three paise in a rupee. The expression "utensils" is not defined in the Act or under the rules and does not restrict the meaning of the word "utensil" to utensils used in a kitchen. The meaning assigned by the revisional authority, based upon an opinion recorded by the Tribunal in the case of M/s Standard Steel & Metal Industries, Sonepat (supra), is incorrect. A utensil is a tool, receptacle/instrument, vessel or a container and may or may not be used in a kitchen and may depending upon its user, be used for various purposes, at home, in the kitchen, for ceremonial purposes, dairy farming in hotels, restaurants etc. The base....
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.... assessment orders. It is further contended that the levy of interest and penalty is a natural consequence of the failure of the petitioner to pay tax at the correct rate. We have heard counsel for the parties, perused averments in the petition as well as reply filed by the State of Haryana and the impugned orders. The question that calls for an answer is whether the Hooka, (brass/iron base) manufactured and sold by the petitioner is a "utensil", for purposes of payment of sale tax under the Haryana General Sales Tax Act, 1973. Admittedly, vide notification dated 18.03.1988, the State of Haryana notified a rate of three paise in a rupee as sales tax for "ferrous and non-ferrous metal utensils including pressure cookers". Admittedly....
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....the arguments and the appeal is dismissed." A perusal of the above order reveals that the Tribunal has without reference to any definitions of the word "utensil" or any meaningful discussion, abruptly, held that as utensils are pots/goods, that are generally used in kitchens, restaurants and hotels, a hooka cannot be classified as a utensil. Before we answer the question posed, namely, whether a hooka is a utensil, for the purposes of a Haryana General Sales Tax Act, it would be appropriate to record that words and expressions used in a taxing statute are to be construed strictly and where a generic word appears in a statute, the word so used has to be interpreted and understood in it common generic sense, by reference to the local ar....
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....ION- "u-ten-sil (yoo-ten sel) n. A vessel, tool, implement, etc.; serving a useful purpose, especially for domestic or farming use. See synonyms under TOOL. [- OF utensile- L utensils fit for use u-tens, ppr. Of uti use]". A utensil as commonly understood and defined, is an implement, a tool, a receptacle, a vessel, a container etc. that may be used for various purposes, depending upon the nature of the utensil and the use to which it is put. The same utensil may be used in a kitchen, in a hotel, in a restaurant, for worship, for ceremonial purposes, in a dairy farm, for farming and various other purposes that may require the use of a utensil, as a tool, a receptacle, an instrument, a vessel or a container. A utensil is not necessaril....
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....acco are placed and the second pipe is used to puff tobacco smoke. The brass base is a receptacle used for storing water and for fixing the pipes of a Hooka. A Hooka, as referred to above, is used in rural societies, at home or outside and as it is a receptacle/container used for storing water, through which smoke is passed before it is inhaled it would necessarily partake the nature of a utensil. We are, therefore, inclined to hold that in the absence of any legislative intent to confine the meaning of the word "utensil, to any particular place, mode or manner of user, the hooka manufactured by the petitioner must necessarily fall within the meaning of the word "utensil". The opinion recorded by the Sales Tax Tribunal, which forms the b....