1959 (8) TMI 41 - DSC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the term "newspaper" under Article 269(1)(f) and item 92 of the Seventh Schedule of the Constitution of India.
2. Whether publications like weeklies and magazines qualify as "newspapers" for exemption from sales tax.
3. Application of definitions from the Press and Registration of Books Act, 1867 and the Indian Post Office Act, 1898 in determining the scope of the term "newspaper."
4. Consideration of the definition of "newspaper" in the context of sales tax exemption laws and previous Acts.

Detailed Analysis:
1. The case involved a dispute over the exemption from sales tax claimed by M/s. A.H. Wheeler & Co., regarding the sales of weeklies and magazines. The key issue was whether these publications qualified as "newspapers" under the Constitution of India, which would make them exempt from sales tax by State Governments. The interpretation of the term "newspaper" under Article 269(1)(f) and item 92 of the Seventh Schedule was crucial in determining the applicability of the exemption.

2. The term "newspaper" was not explicitly defined in the Constitution of India. However, references were made to the definitions provided in the Press and Registration of Books Act, 1867, and the Indian Post Office Act, 1898. The Post Office Act's definition stated that publications consisting of political or other news, articles related to news, or current topics could be registered as newspapers. The broad scope of this definition encompassed various types of publications, including news magazines, weeklies, and pictorial periodicals.

3. The Court analyzed the definition of "newspaper" in the context of the sales tax exemption laws and previous Acts, such as the Tax on Newspapers (Sales and Advertisements) Repeal Act, 1951. It was noted that the definition of newspapers in different Acts varied slightly, with the Post Office Act providing a broader interpretation. In the absence of an explicit definition in the Constitution, the Court leaned towards adopting a definition that favored the subject, following the general practice of courts in taxation matters.

4. Ultimately, the Court ruled in favor of the petitioner, M/s. A.H. Wheeler & Co., holding that the deduction of 15 percent made against their claim for sales tax exemption on the sale of publications like weeklies and magazines should not have been upheld. The Court set aside the orders of the lower courts, emphasizing that the publications in question qualified as "newspapers" within the scope of the relevant Acts and regulations. The decision was expected to impact similar cases pending before the Board, ensuring consistency in the application of sales tax exemptions to such publications.