1985 (2) TMI 232 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of tax entry for glass marbles under the Andhra Pradesh General Sales Tax Act.

The judgment involves a dealer in glass marbles challenging the assessment by the Deputy Commissioner, who revised the assessment to subject the glass marbles to a higher tax rate. The petitioner contended that the glass marbles should be classified under item 123 of the First Schedule of the Andhra Pradesh General Sales Tax Act as "glassware." The Commercial Tax Officer initially accepted this contention, but the Deputy Commissioner disagreed, categorizing the glass marbles as general goods subject to a different tax rate. The petitioner appealed to the Sales Tax Appellate Tribunal, arguing that the glass marbles fell under different sub-items of item 123. The Tribunal rejected these contentions, leading to the petitioner filing a tax revision case before the High Court.

The main issue before the High Court was whether glass marbles should be considered "glassware" falling under item 123 of the Act. The petitioner argued that the dictionary meaning of "glassware" as "any article made out of glass" should apply, thereby including glass marbles. However, the Court held that the commercial sense of the term should prevail over the dictionary meaning. Citing the Supreme Court's ruling in Indo International Industries v. Commissioner of Sales Tax, the Court emphasized that items like glass marbles, even though made of glass, do not align with the commercial understanding of "glassware." The Court reasoned that the utility and function of glass marbles differ significantly from traditional glassware items, leading to the conclusion that glass marbles do not fall under the entry for "glassware."

Additionally, the Court rejected the petitioner's argument that the department's practice of treating glass marbles as falling under item 123 should be accepted. Referring to a previous judgment regarding glass bangles, the Court reinforced its stance that items made of glass do not automatically qualify as "glassware" under the Act. Ultimately, the High Court upheld the Tribunal's decision, affirming that glass marbles do not fall under the specified entry for "glassware" in the Act. The Court dismissed the tax revision case, citing previous judgments and ordering costs to be paid by the petitioner.