1977 (12) TMI 133 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of item 22 of the schedule to the notification under section 17 of the Tamil Nadu General Sales Tax Act regarding the classification of certain publications as "reading books" for tax exemption.

Analysis:
The judgment concerns the classification of three publications under item 22 of the schedule to the notification issued under section 17 of the Tamil Nadu General Sales Tax Act. The Appellate Assistant Commissioner initially classified the publications as falling under item 22, but the Board of Revenue, in suo motu revision, reversed this decision. The main issue revolves around whether the publications in question qualify as "reading books" for tax exemption under the said item.

The court examined various precedents from different High Courts to interpret the term "books meant for reading and reference." The Andhra Pradesh High Court held that the term "books" is comprehensive and includes all kinds of books. Conversely, the Kerala High Court adopted a narrow view, suggesting that books must be for education, knowledge, enlightenment, or recreation to qualify. The Madras High Court also had a previous ruling where it held that copying books do not fall under the category of "reading books including text-books."

The court emphasized that the interpretation of the term "reading books" in item 22 should be based on its natural meaning. It rejected the idea of imposing additional restrictions beyond books meant for reading. The court highlighted that the exemption notification should be construed according to its words, similar to a taxing statute. It stressed that the ordinary meaning of "reading books" should prevail, even if the term itself may not be ideal.

Ultimately, the court set aside the Board of Revenue's decision and allowed the revision, holding that the publications in question fall under item 22 of the schedule to the notification. The court awarded costs to the appellant and clarified that the term "reading books" should be understood broadly, without unnecessary limitations.