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1959 (12) TMI 28 - HC - VAT and Sales Tax
Issues:
1. Whether the Tribunal was correct in assessing the turnover of Rs. 16,718 to tax. 2. Whether the Tribunal was correct in including the estimated cost of gunnies in the assessable turnover. Analysis: 1. The first issue pertains to the assessment of the turnover of Rs. 16,718 for the sale of four varieties of vegetables. The key question was whether these vegetables fell within the scope of the term "yam" as per a specific notification. The Tribunal relied on the English dictionary meaning of "yam" as there was no statutory definition available. However, the High Court emphasized that since the vegetables had Tamil names without direct English equivalents, the understanding of these names in relation to the term "yam" was crucial. Through references to the Tamil Lexicon and historical sources, the Court determined that two of the vegetables were indeed species of yam, while the other two did not fall under this category. Consequently, the Court excluded the turnover of Rs. 2,968 and Rs. 1,628 for the vegetables that were not considered yams under the notification. 2. The second issue revolved around the inclusion of the estimated cost of gunnies in the assessable turnover. The petitioner argued that since they did not deal in gunnies separately, the cost should not be taxable. However, the Court noted that the petitioner purchased vegetables packed in gunny bags and sold them in the same bags, indicating a sale of both the vegetables and the containers. Citing established legal principles, the Court affirmed that when there is a sale of an article along with its container, both are considered sold. Therefore, the Tribunal's decision to tax the turnover related to the gunny bags was upheld. In conclusion, the High Court partially allowed the petition by excluding the turnover of certain vegetables from taxation while affirming the taxation of the turnover associated with the gunny bags. As neither party entirely succeeded, no costs were awarded in the matter.
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