1970 (2) TMI 95 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of tax liability for sale of gold ornaments without precious stones.

Analysis:
The case involved a dispute regarding the tax liability of gold ornaments sold by a jeweler for personal use. The original assessing authority deemed the ornaments taxable under a specific serial number, which had been repealed. The appellate authorities, however, concluded that the ornaments should be taxed under a different serial number. The central issue was whether the ornaments fell under serial No. 3F or serial No. 67 of the Finance Department Notification. Serial No. 3F pertained to ornaments made of gold or silver without precious stones, while serial No. 67 covered any other articles.

Upon examining the relevant serial numbers, the court determined that the ornaments in question, not being studded with precious stones, were liable to be taxed under serial No. 3F at a rate of two per cent. It was emphasized that if an article fits within a specific serial number, the general serial numbers do not apply. Serial No. 67, being a residuary provision, was deemed inapplicable as the ornaments clearly fell under serial No. 3F.

The court rejected the argument based on a previous decision, clarifying that the principle from that case was limited to its specific facts and did not apply in the present scenario. Ultimately, the court upheld the view taken by the Tribunal, ruling that the gold ornaments were taxable under serial No. 3F and not under serial No. 67. The reference was discharged with no order as to costs, and the judgment was agreed upon by both judges.