2005 (7) TMI 611 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the term "pottery" under the U.P. Sales Tax Act, 1948.

Analysis:
The revision before the High Court involved a question of law regarding whether earthen tiles fell under the category of "pottery" as per the U.P. Sales Tax Act. The dispute arose from the assessment years 1981-82, 1982-83, and 1983-84, relating to a village industry unit engaged in manufacturing and selling rosin, turpentine oil, varnish, bricks, and earthen tiles. The Sales Tax Tribunal had classified earthen tiles as pottery, leading to the exemption of the cottage pottery industry under specific notifications.

The revisionist argued that the term "pottery" referred specifically to pots and that manufacturing earthen tiles did not fall under this definition. The High Court examined the meaning of "pottery" as per Webster's Third New International Dictionary, noting that it encompassed the place where clayware is made and fired, the art or craft of the potter, and the manufacture of clayware. Importantly, the definition also distinguished earthenware from brick and tile, indicating that earthen tiles could not be considered pottery. Consequently, the High Court disagreed with the Sales Tax Tribunal's classification of earthen tiles as pottery.

In conclusion, the High Court ruled in favor of the revisionist, allowing the revision to the extent discussed and setting aside the Sales Tax Tribunal's order. The judgment clarified the distinction between pottery and other earthenware products, emphasizing that earthen tiles did not fall within the definition of pottery under the U.P. Sales Tax Act, 1948.

Judgment:
The High Court allowed the petition, setting aside the Sales Tax Tribunal's order regarding the classification of earthen tiles as pottery.