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1973 (4) TMI 90 - HC - VAT and Sales Tax
Issues:
1. Interpretation of the term "glassware" under U.P. Sales Tax Act. 2. Classification of glass sheets for tax purposes. 3. Application of Notification No. S.T. 905/X dated 31st March, 1956. 4. Comparison with previous court decisions on similar issues. Detailed Analysis: 1. The primary issue in this case is the interpretation of the term "glassware" under the U.P. Sales Tax Act. The court noted that the term "glassware" is not defined in the Act or Rules, and thus, common meanings attributed to it must be considered. The contention was whether "glass sheets" fall under the category of "glassware" for tax purposes. 2. The dispute revolved around the classification of glass sheets for tax assessment. The assessee argued that glass sheets should be taxed at 2%, considering them as unclassified items. However, the Sales Tax Officer classified glass sheets as "glasswares" under Notification No. S.T. 905/X, subjecting them to a higher tax rate of 7% and later 10%. 3. The court analyzed the notification and previous decisions to determine the scope of the term "glassware." Referring to entry No. 15 in the notification, which lists "glasswares other than hurricane lantern chimneys and bottles," the court interpreted "glassware" to include all articles of glass except those specifically excluded or listed separately. 4. The judgment also compared this case with previous court decisions, such as Tribuwandas Gulabchand of Nagpur v. State of Maharashtra, where the term "glassware" was held to include glass sheets. The court distinguished another case, Commissioner of Sales Tax v. Manohar Glass Works, where the term was limited to finished articles sold to consumers, not raw materials. In conclusion, the court answered the question in favor of the tax department, ruling that glass sheets are covered under the term "glassware" and are liable to tax under section 3-A of the U.P. Sales Tax Act. The assessee was directed to pay the costs of the reference to the Commissioner of Sales Tax.
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