1986 (3) TMI 316 - HC - VAT and Sales Tax

Issues Involved:
1. Tax exemption status of booklets, brochures, annual reports, folders, and UNESCO couriers under the Punjab General Sales Tax Act, 1948, and the Haryana General Sales Tax Act, 1973.
2. Jurisdiction of the Joint Excise and Taxation Commissioner, Haryana, in revising the orders of the appellate authority and Assessing Authority.
3. Interpretation of the term "books" under the relevant Sales Tax Acts.

Detailed Analysis:

Issue 1: Tax Exemption Status of Various Printed Items

The primary issue was whether items such as booklets, brochures, annual reports, folders, and UNESCO couriers printed and sold by the assessee are covered under the term "books" in entry No. 22 of Schedule B of the Punjab General Sales Tax Act, 1948, and entry No. 8 of Schedule B of the Haryana General Sales Tax Act, 1973, thereby exempting them from tax.

The assessee argued that these items should be exempt from tax as they fall under the category of "books." This argument was initially accepted by the appellate authority, which held that these items were indeed covered by the term "books" and thus exempt from tax. However, the Joint Excise and Taxation Commissioner, Haryana, in suo motu revision, rejected this contention and held that these items were not exempt from tax. The Sales Tax Tribunal upheld this decision.

Upon further review, the High Court considered various precedents, including:
- Indo Arts' Case: Held that brochures, booklets, and folders are comprehended in the word "books."
- Govindaswamy Binding Works' Case: Expanded the definition of "books" to include all kinds of books, including account books and notebooks.
- Swaraj Printers' Case: Concluded that only literary books meant for reading or reference for the public were exempt.

The High Court concluded that booklets, brochures, and annual reports fall within the ambit of "books" as they are meant for learning, acquiring knowledge, or getting information on specific matters. The Court disagreed with the narrower interpretation in Swaraj Printers' Case that excluded certain specialized books from the definition of "books."

Issue 2: Jurisdiction of the Joint Excise and Taxation Commissioner

The assessee challenged the jurisdiction of the Joint Excise and Taxation Commissioner in revising the orders of the appellate authority and the Assessing Authority. The revisional authority, however, proceeded with the revision and ultimately set aside the orders of the appellate authority and the Assessing Authority, remanding the matter for reassessment.

The High Court did not find any explicit discussion on the jurisdictional challenge in the judgment, indicating that the primary focus was on the interpretation of the term "books."

Issue 3: Interpretation of the Term "Books"

The High Court emphasized that the term "books" should be interpreted in its popular sense and given its plain ordinary meaning. It should include items that provide knowledge, information, and guidance, and not be restricted to literary works or textbooks alone.

The Court noted that the term "books" in the Sales Tax Acts was intended to cover a broad range of printed materials, including specialized publications that cater to specific interests.

Conclusion:

The High Court held that booklets, brochures, and annual reports printed and sold by the assessee fall within the definition of "books" under the Punjab General Sales Tax Act, 1948, and the Haryana General Sales Tax Act, 1973, and are thus exempt from tax. The Court quashed the levy of sales tax on these items and directed that the assessee be entitled to a refund of the tax paid.

Order:

Civil Writ Petitions Nos. 498 of 1983 and 3483 and 3484 of 1984 were allowed to the extent that the levy of sales tax on booklets, brochures, and annual reports printed and sold by the assessee was quashed. The parties were left to bear their own costs.

Order accordingly.

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