1959 (7) TMI 41 - HC - VAT and Sales Tax

Summary

Issues:
- Interpretation of whether "dressed poultry" falls under the category of "meat" for sales tax exemption under specific entries of the Bombay Sales Tax Act, 1946 and the unamended Act of 1953.

Detailed Analysis:
The case involved a dispute regarding the applicability of sales tax on the sale of dressed poultry by the respondents to military authorities. The opponents claimed exemption under specific entries of the Bombay Sales Tax Act, 1946, and the unamended Act of 1953, which excluded "meat" from taxation except when sold in sealed containers. The Sales Tax Authorities initially held that "meat" did not include dressed poultry. However, the High Court considered various definitions and interpretations to determine the legislative intent behind the term "meat." They concluded that since the legislature intended to exclude most food items from taxation, including fish and fresh eggs, there was no strong indication to exclude dressed poultry from the definition of "meat." Therefore, the opponents were entitled to a beneficial construction of the statute, and their point in the revision applications succeeded.

The High Court addressed the proposed questions for reference, focusing on whether "dressed poultry" could be considered as "meat" under the relevant entries of the Bombay Sales Tax Act. The Court emphasized that while common parlance might not always include poultry in the definition of "meat," the broader connotation of the term encompassed dressed poultry. Since the legislative intent was to exempt most food items from taxation, including those commonly used as food or condiments, the Court found no reason to exclude dressed poultry from the definition of "meat." Consequently, the Court answered the reference question in the affirmative, ruling in favor of the assessees and awarding them costs from the Collector of Sales Tax.

In conclusion, the judgment clarified that dressed poultry could be considered as "meat" within the meaning of the relevant entry of the Bombay Sales Tax Act, entitling the assessees to exemption from sales tax. The decision was based on the broader interpretation of the term "meat" in line with the legislative intent to exclude most food items from taxation, ultimately resolving the dispute in favor of the respondents.