1978 (11) TMI 143 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of the term "ornamental metalware" under entry 13 of Schedule E to the Bombay Sales Tax Act, 1959.

In the judgment delivered by the Bombay High Court, the two references under section 61(1) of the Bombay Sales Tax Act, 1959 were considered. The question at hand was whether certain articles, including shields, mementoes, crests, and trophies made of metal, manufactured by the opponent-dealer, fall under entry 13 of Schedule E to the Act. The Sales Tax Officer initially taxed the sales of these items under entry 13, leading to appeals by the assessee. The Sales Tax Tribunal later determined that the articles did not qualify as "ornamental metalware" under entry 13 but rather fell under entry 22 of the schedule. The Tribunal's decision was based on the argument that the primary purpose of these items was commemoration rather than decoration, as they were typically presented to honor achievements or events, not for decorative purposes.

The Court examined the definitions of "ornamental metalware" and the nature of the articles in question. It was noted that the items, such as trophies, shields, crests, and mementoes, were made of metal and required skill in their creation. However, the Court agreed with the Tribunal's interpretation that the main objective of these articles was commemoration, not decoration. The judgment emphasized that ornamental articles are primarily for decoration, whereas the items in question were intended for honoring achievements or events. Therefore, the Court concurred with the Tribunal's view that these articles did not fall within the scope of "ornamental metalware" as defined in entry 13 of Schedule E to the Act.

Ultimately, the Court answered the question in the affirmative, supporting the Tribunal's decision. The applicant was directed to bear the costs of the references, and the reference was resolved in favor of the assessee.