1964 (11) TMI 92 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of entry 12 of Schedule E in the Bombay Sales Tax Act, 1959 regarding the classification of steel trunks as suit-cases for sales tax purposes.

Analysis:
The case involved a dispute regarding the classification of steel trunks sold by the applicants under the Bombay Sales Tax Act, 1959. The applicants contended that the steel trunks should be classified under the residuary entry 22 of Schedule E, while the revenue authorities argued that they fell under the category of suit-cases as per entry 12 of Schedule E. The key question was whether the steel trunks could be considered suit-cases under the Act, as it would impact the applicable tax rate. The expression "suit-cases" in entry 12 was not defined in the Act, requiring interpretation based on ordinary parlance and common usage among the people. The court emphasized that laws should be interpreted in a manner understandable to the general public. The definition of "suit-case" was discussed, highlighting that the material or shape of the article is not decisive; rather, it should be easily portable for carrying clothes on a journey.

The court examined various dictionary meanings of "suit-case" to determine its popular sense, concluding that a suit-case is essentially an easily portable bag for carrying clothes. The material or shape of the article is not crucial; what matters is its convenience for travel. The argument that entry 12 was intended for luxury goods was dismissed by citing other entries in Schedule E that included common items like clocks and trimmings. The court emphasized that the context of entry 12 did not limit suit-cases to expensive varieties but encompassed articles commonly used for travel, like despatch cases. Adding restrictive interpretations not present in the entry was deemed inappropriate.

Applying the test of portability and convenience for travel, the court found that the steel trunks sold by the applicants qualified as suit-cases under entry 12 of Schedule E. The dimensions and practicality of the steel trunks indicated their suitability for carrying clothes on a journey. Therefore, the court ruled in favor of the revenue authorities, determining that the steel trunks were indeed suit-cases for sales tax purposes under the Act. The applicants were directed to pay the costs of the reference to the State, and the reference was answered in the affirmative.