TaxTMI 
TaxTMI 
2006 (9) TMI 632
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....governed by the provisions of the Act, including the Appellate Tribunal came to the conclusion that Tata Consultancy Services Ltd., the Petitioner before the Court, met the description of an organization rendering expert services within the meaning of the notification dated May 17,1971. The Petitioner, while disputing that interpretation, submitted before the Court that the words "expert services" are followed by the expression "such as", after which establishments of a specific nature have been adverted to. The question before the Court is whether any and every establishment rendering expert services is within the purview of the notification dated May 17, 1971 or whether, as submitted by the Petitioner, establishments analogous to those which have specifically been listed out would fall within the purview of the notification. For the reasons which are now indicated, this Court is of the view that while the expression "such as", it is well settled, is illustrative and not exhaustive, an establishment, to be within the purview of the notification should be rendering expert services of the type adverted to in the notification. This view, as the reasons contained in the judgment would....
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....ia and Overseas who are mainly computer professionals working in a consulting cadre. 3. On May 17, 1971, the Central Government issued a notification in the exercise of powers conferred upon it by the provisions of Section 1(3)(b) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. By the notification the application of the Act was extended to a class of establishments wherein expert services of the nature stipulated therein were rendered. The notification provided thus: The Central Government hereby specifies that with effect from May 31, 1971, the said Act, shall apply to every establishment rendering expert services such as supplying of personnel, advice on domestic or departmental enquiries, special services in rectifying pilferage, thefts, and pay roll irregularities to factories and establishments on certain terms and conditions as may be agreed upon between the establishment and the establishment rendering expert services, and employing twenty or more persons. Contemporaneously with the extension of the Act to the aforesaid establishments, a notification came to be issued by the Central Government so as to amend the Employees' Pro....
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....h the 29 conditions which were imposed by the Provident Fund authorities for the grant of exemption. The Petition was accordingly directed to stand over. 5. On August 6, 2004, the Assistant Provident Fund Commissioner rejected the application for exemption. The petition thus came up for hearing before the learned single Judge of this Court. By an order dated November 22, 2004, the learned single Judge issued certain further directions since there was a dispute between the parties as to whether there was compliance with the requirement of the authorities necessary for considering the application for exemption. The authorities were directed to take a final decision. It was, however, clarified that while the petition was being disposed of, it would be open to the Petitioner to challenge the final decision on all grounds and to agitate all the rights and contentions that were raised in the petition. In the circumstances, it is not disputed before this Court that the question as to whether the Act itself applies to the Petitioner by virtue of the notification dated May 17, 1971 was kept open. On March 30, 2005 the application for the grant of exemption was rejected by an order passed....
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....und authorities, it has been submitted that while the notification does not cover establishments rendering all types of expert services without exception; the words "and the establishments rendering expert services and employing 20 or more persons" would bring in the establishment of the petitioner within the purview of the Act. 7. In assessing the merits of the rival contentions, it needs emphasis that the notification dated May 17, 1971 is intended to apply to every establishment rendering expert services such as supplying of personnel, advice on domestic or departmental enquiries, special services in rectifying pilferage, thefts and pay roll, irregularities in factories and establishments, provided the establishment employs 20 or more persons. The settled principle of interpretation is that the expression "such as" is intended to indicate that the specification of categories that follows thereafter is illustrative and not exhaustive. At the same time, the expression "such as" indicates that the ambit of the words which precede it must be construed contextually with the category or type constituted by the words that follow. Hence, establishments which fall within the purview o....
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....n "such as" fell for consideration before a Bench of two learned Judges of the Supreme Court in Royal Hatcheries (supra). The Supreme Court construed the provisions of Rule 5(2) of the Andhra Pradesh General Sales Tax Rules, clause 26 of which was to the following effect: (xxvi) Livestock, that is to say, all domestic animals such as oxen, bulls, cows, buffaloes, goats, sheep, horses etc. (emphasis supplied) The Supreme Court interpreted both the expressions, namely, 'that is to say" and "such as". The Court emphasised that the rule making authority had limited the expression "livestock" only to domestic animals by using the words 'that is to say". Moreover, even amongst domestic animals, the rule making authority mentioned only some animals namely, oxen, bulls, cows, buffaloes, goats, sheep, horses etc. The Supreme Court was of the view that this indicated the type of domestic animals which the rule making authority had in mind. In that context the Court observed as follows: But the rule-making authority chose to limit the meaning of 'livestock' in the said clause only to domestic animals mentioned therein. Yet again, the clause "does not st....
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....connotation of the words "domestic animals" besides doing violence to the spirit and structure of the clause. The use of the word "all" preceding "domestic animals" does not make any difference. It only means all domestic animals of the type mentioned therein - all of which are quadrupeds. If birds are also included in the clause, the very purpose of giving the illustrations disappears. (emphasis supplied) The expression "such as" has been interpreted in a judgment of the Supreme Court in the Central Bank of India (supra) in the context of the provisions of Section 34 of Code of Civil Procedure, 1908. Placing emphasis on the definition of the expression in Webster's Dictionary, the Supreme Court has held that the words "such as" mean "having the particular quality or character specified" or "representing the object as already particularised in terms which are not mentioned". The Court held as follows: Thus, generally speaking, the use of the word "such" as an adjective prefixed to a noun is indicative of the draftsman's intention that he is assigning the same meaning or characteristic to the noun as has been previously indicated or that he is referring to som....
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....iven a limited meaning to printing material like or as that of annual reports and balance sheets and the word 'etc.' had to be read in the same context. Finally, it would be necessary to advert to the definition of the expression "such as" in the Oxford Dictionary, (Third Edition, at page 52). The expression "such as" is defined as "of the or a kind that" or "of the kind or degree already described or implied in context. 10. In view of the position in law which emerges from the aforesaid decisions, the facts of the present case will have to be now dealt with. The essence of the business function of the Petitioner is to render consultancy services in areas of management control principally with the aid of computers and information Technology. The nature of consultancy services provided by the Petitioner cannot be regarded as falling in the type or category of the expert services that are spelt out in the notification dated May 17, 1971. it is undisputed before the Court that the Petitioner does not supply personnel nor does it render expert services of the nature specifically spelt out in the notification. The services rendered by the Petitioner cannot be regarded as serv....