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TMI Blog1977 (4) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... of meat and meat Products. In 1966-67 the dealer claimed tax free sales to the tune of Rs.1,07,098.71, 1,38,166.25, 1,86,605.69 and 1,61,891.32 in the first, second, third and fourth quarters respectively on the grounds that the same pertained to ham, sausages, bacon and salami which were 'meat' and covered under entry No. 4 of the Second Schedule appended to the Bengal Finance (Sales Tax) Act, 1941. The assessing authority did not agree with the contention of the dealer and taxed the same at 5per cent but in appeal the learned Asstt, Commissioner held that the sales of ham and bacon were not leviable to sales tax as the same could not be eaten away directly without cooking them properly and the appliance of salt was immaterial because it did not change its character of not being raw meat. As regards the sausages, salami and pressed ham, the learned Asstt. Commissioners view was that they were taxable in view of the fact that the same were already coocked and could directly be eaten with bread etc. He noted that the sausages required a slight heat before it was eaten so those items could not be allowed to be exempt from the levy of sales tax and they were also not covered under ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the learned Assistant Commissioner. 6. Appeal No. 78 STT:- I propose to deal with Appeal No 78/STT first. In this appeal the only point for determination is whether the sale of sausages, salami and pressed ham are exempt from levy of sales tax. According to the dealer the said items are covered by entry No 4 of the Second Schedule appended to the Local Act and as such they are exempted goods under s. 6. That entry reads: "Meat (except when sold in sealed containers)." 7. 'Meat' has not been defined in the Act itself. According to the Websters Third New international Dictionary, 'meat' means flesh of domesticated cattle swine, sheep and goats. 8. Chambers Twentieth Century Dictionary defines 'meat' as the flesh of animals used as food sometimes beef, mutton, pork, veal etc. 9. Webster's Third New International Dictionary defines 'ham' as part of the leg behind the Knee : the hollow of the Knee. 10. 'Sausages' in the same dictionary has been defined as highly seasoned finely divided meat that is usually a mixture (as of beef or pork) is often extended (as with cereal or milksolids), is stuffed in casings or prepared animal intestine or synthetic material which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o this mixture to cure and increase the life of sausages. The sausages are also further cooked or smoked for the same purpose. It was explained that the purpose of cutting, smoking and cooking resulted in the destruction of bacteria to the desired degree and that the extent of destruction or bacteria was maximum in case of cooking and minimum in the case of curing. The applicant in that case explained that smoking was done by exposing the meat to smoke for a limited period of time so as to kill bacteria and extend its life. In the case of sausages it was stated that the purpose was to extend life and to enable scraps of meat to be used so as to avoid wastage. The scraps of meat were merely finally ground and covered in an outer covering known as casing so as to easily handle and cook the same. It was stated that certain condiments had to be added in this process so as to avoid unpleasant flavour which would otherwise result from mixing of various types of waste meat. I am informed that the process adopted by the dealer in preparing sausages, salami and pressed ham are not different to that in the Bombay case. 17. Item I of the Schedule 3 of the Assam Sales Tax Act, 1947 exempts f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process. It was added that the term "sugar" was not confined to sugar in its ordinary form but covered sugar in all its forms provided the sugar element was wholly predominant. 22. In the case of Tilok chand Prasad Kumar vs. The STO, Hathras,(6) the fact was that after the purchase of the arhar dal by the Dal mills, it was put through a process of cleaning as a result of which dust and currana were removed and chhilka, churi and kutta were obtained as by products. The decorticated arhar was then subjected to processing in oil and water and left to dry and thereafter the dried arhur was dragged in the mill as a result of which zarda, Khanda, turra and dal were obtained. These were separated and sold separately. It was held by the High Court of Allahabad that the same could not be said to be a commodity different from the arhar dal purchased by the Dal Mills. 23. In Commissioner Sales Tax, U.P. vs. Balwant Singh Jag Roshan Lal (7), the Allahabad High Court held that 'black salt' which was produced by mixing sambher salt with charcoal and heating it was 'salt' as understood in common parlance and would be exempt in view of s.4(1)(a)of the U.P. Sales Tax Act, 1948. 24. Nearer ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealing would attribute to it." 27. Similar view was expressed by the Supreme Court in the case of the Commissioner of Sales Tax vs. Jaswant Singh Charan Singh (11). The question was whether 'Charcoal' was included in the word 'Coal'. It was held that while construing the word coal the test that would be applicable is what is the meaning which persons dealing with coal and consumers purchasing it as fuel would give to that word. It was added that the sales tax Statue, being one levying a tax on goods, must, in the absence of a technical term of science or art, be presumed to have used an ordinary term as 'coal' according to the meaning ascribed to it in common parlance. Viewed from that angel both the merchant dealing in coal and a consumer wanting to purchase, it would regard coal not in its geological sense but in the sense as ordinarily understood and would include 'Chorcoal' in the term 'coal' It was observed that while interpreting items in statues like the Sales Tax Acts, resort should be had not to the scientific or technical meaning of such terms but to their popular meaning or the meaning attached to them by those dealing in them, that is to say, to their commercial sense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or for establishing uniform practices in Sales Tax matter, his order deserved obedience and respect. the trade was guided by that order. giving a meaning which is given to these articles in common parlance and understanding them in the same sense in which they are understood by those who deal in them, I am of the opinion that sausages, salami and pressed ham were nothing but meat and exempted goods under entry No. 4 of the Second Schedule. 30. For the above reasons the order of the authorities below need reversal and appeal No. 78/STT is to be allowed. 31. Appeal No. 79/STT:- In this appeal the question for determination is whether the authorities below were justified in not allowing the concessional rate of tax in respect of sales which were alleged to have been made to registered dealers. Shri. T.D. Sharma, assessing authority, Notified authority in his order dated 4th March, 1971 has noted the defects in the various 'C' forms. He also found that the dealer did not produce 'C' forms at all in respect of some of the sales. The defects in the 'C' forms as noted by the learned assessing authority were not removed and some of the 'C' forms on account of which concession was not a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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