1952 (3) TMI 25 - HC - VAT and Sales Tax

Summary

Issues:
Whether the "All India Reporter" qualifies as a periodical for the purpose of the Sales Tax Act.

Analysis:
The judgment delves into the question of whether the "All India Reporter" can be classified as a periodical under the Sales Tax Act. The publication is described as a monthly journal of law that contains verbatim reports of important court decisions with headnotes summarizing key legal points. The Commissioner initially argued that the publication's binding in volumes for use as reference books by legal practitioners disqualified it as a periodical. However, the court disagreed, emphasizing that the regular monthly publication format, containing various sections for different courts and legal content, did not alter its classification as a periodical.

The court also addressed the argument that the publication's issuance in parts at periodic intervals, similar to serialized works like Dickens' "Pickwick Papers" or the biography of Mahatma Gandhi, could impact its classification. It was determined that the key factors in defining a periodical are whether it is intended for a specified or unspecified period and whether its theme is singular or varied. The court clarified that even if subscribers bind the monthly parts into volumes at the end of the year, it does not change the publication's periodical nature.

Furthermore, the judgment discussed the Commissioner's refusal to consider the dictionary definition of "periodical" and highlighted the importance of interpreting words in their ordinary sense. The court disagreed with the Commissioner's assertion that law journals are not periodicals, noting that publications like the "Law Quarterly Review" would still qualify. Ultimately, the court concluded that the "All India Reporter" issued in monthly parts does indeed meet the criteria to be classified as a periodical under the Sales Tax Act.

In terms of practical implications, the court ruled that subscriptions for the monthly parts of the publication should be excluded from turnover as they relate to tax-free goods. However, the sale prices of yearly volumes compiled from the monthly parts cannot be excluded from turnover. Consequently, the court set aside the Commissioner's order and directed a reassessment based on the legal interpretation provided in the judgment.