1968 (12) TMI 89 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the term "glasswares" in a sales tax notification.

Analysis:
The judgment pertains to the interpretation of the term "glasswares" in a sales tax notification issued by the State Government. The case involved the classification of glass beads for taxation purposes under the U.P. Sales Tax Act and the Central Sales Tax Act. The Sales Tax Officer initially held that glass beads were taxable under the category of "glasswares" specified in the notification. The assessee contended that glass beads did not fall under the definition of "glassware." The Additional Revising Authority allowed the revision applications of the assessee, leading to references being made to the High Court for clarification.

The court examined the historical context of tax notifications related to glass products. It noted that previous notifications treated "glasswares" and "glass bangles" as distinct categories, indicating that glass bangles were excluded from the definition of "glasswares." The court emphasized the consistent treatment of glass bangles separately from glasswares in various notifications over the years.

The court analyzed the language used in the notifications and considered the dictionary meaning of the term "ware." It rejected the argument that "glasswares" should be limited to glass containers only, pointing out that subsequent notifications expanded the exclusion list to include items like optical lenses, indicating a broader interpretation of "glasswares."

Furthermore, the court addressed the contention that other entries in the notifications mentioning glass products like opera glasses and binoculars should restrict the scope of "glasswares." It clarified that these specific entries formed distinct groups and did not necessarily limit the definition of "glasswares" to containers alone.

Ultimately, the court concluded that "glasswares" encompassed all articles made of glass except those specifically excluded in the notification and items falling under other specified entries. The court dismissed the assessee's argument that glass beads could be classified under a different category such as articles used for ornament or prayer, as no such specific category existed in the notification.

In conclusion, the court answered the reference question in the affirmative, affirming that glass beads could be included in the category of "glasswares" as per the sales tax notification. The Commissioner of Sales Tax was awarded costs, and the references were resolved in favor of the tax authorities.