1962 (12) TMI 44 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the term 'books' in section 4 of the U.P. Sales Tax Act to determine if it includes diaries for sales tax assessment purposes.

Detailed Analysis:

The judgment by the Allahabad High Court addresses a reference made under section 11(1) of the U.P. Sales Tax Act regarding the inclusion of diaries as 'books' for sales tax assessment. The case involves an assessee dealing in books, stationery, and diaries, assessed for turnovers including proceeds from diary sales for three consecutive assessment years. The central question is whether diaries fall under the exemption for 'books' as per section 4 of the Act. The State Government's notification exempting "exercise books" adds complexity to the interpretation of the term 'books' in the context of diaries (para 1-2).

The court delves into the definitions of 'book' and 'diary' from standard dictionaries, highlighting the multiple meanings of 'book' as a written or printed narrative or a collection of sheets bound together. In contrast, a 'diary' is defined as a daily record of events or transactions. The court emphasizes that while diaries may contain printed material, their primary purpose is for recording daily events, not for reading like traditional books. This distinction is crucial in determining whether diaries qualify as 'books' under section 4 of the Act (para 3).

The judgment further explores the legislative intent behind using the term 'books' in section 4, suggesting that it is meant in a restricted sense akin to articles of universal necessity like water or food. The inclusion of 'magazines' and 'newspapers' alongside 'books' implies a specific connotation for 'books' beyond a generic interpretation. The court opines that diaries, despite containing printed material, do not align with the legislative intent behind exempting certain goods under section 4 (para 4).

Additionally, the court references a legal precedent where the interpretation of 'books' in a will differed from its application in a tax statute. The judgment emphasizes that the contextual usage of terms in statutory provisions must align with the legislative intent and surrounding terminology. The principle of noscitur a sociis, interpreting words based on their context and associations, guides the court in determining the scope of 'books' in the sales tax context (para 5).

Ultimately, the court concludes that diaries do not fall within the ambit of 'books' as intended under section 4 of the U.P. Sales Tax Act. The judgment answers the reference question in the negative, directing the assessee to bear the costs of the reference. The detailed analysis provides a comprehensive examination of the term 'books' in the legislative framework, emphasizing the specific interpretation required for tax assessment purposes (para 6).