1985 (7) TMI 337 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether "gowar churi" is exempt from sales tax under entry No. 9 of the Schedule to the Rajasthan Sales Tax Act, 1954.
2. Interpretation of the term "gowar" in the context of entry No. 9 of the Schedule.
3. Relevance of the common parlance meaning in determining the taxability of "gowar churi."

Detailed Analysis:

1. Exemption of "gowar churi" from Sales Tax:
The primary issue was whether "gowar churi," used as cattle feed, was exempt from sales tax under entry No. 9 of the Schedule to the Rajasthan Sales Tax Act, 1954. The Assistant Commercial Taxes Officer initially charged a 2% tax on the sale of "gowar churi," rejecting the dealer's claim for exemption. However, the Deputy Commissioner (Appeals) and the Board of Revenue, Ajmer, both held that "gowar churi" being cattle feed, was exempt from tax under entry No. 9 of the Schedule.

2. Interpretation of "gowar":
The court examined the term "gowar" as used in entry 9 of the Schedule, which excludes "gowar," cotton-seeds, and oil-cakes from the definition of cattle feeds exempt from tax. The court referred to various precedents to determine the meaning of "gowar" in common parlance and commercial sense. It was concluded that "gowar churi," although a derivative of "gowar," is not the same commodity and is used exclusively as cattle feed, thus falling outside the exclusion of "gowar" in entry 9.

3. Common Parlance Meaning:
The court emphasized the importance of interpreting terms in sales tax statutes based on their common parlance or commercial sense, as understood by dealers and consumers. Citing several cases, including Annapurna Carbon Industries Co. v. State of A.P. and Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan, the court reiterated that the meaning of terms in sales tax enactments should align with how they are understood in trade. The court found that in common parlance, "gowar" and "gowar churi" are distinct, with "gowar churi" being recognized as cattle feed.

Conclusion:
The court affirmed the Board's decision that "gowar churi," being used exclusively as cattle feed, is exempt from sales tax under entry No. 9 of the Schedule to the Rajasthan Sales Tax Act, 1954. The application under section 15(3A) was dismissed, and the order of the Board dated 16th February 1979 was upheld. There was no order as to costs.