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TMI Blog2008 (3) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment is clear that only gold bullion and specie is entitled to the concessional rate of tax. Under the circumstances, the same cannot be extended to silver as claimed by the assessee. - Civil Appeal No. 4491-4494 of 2002, Writ Petition No. 1727 of 1997 - - - Dated:- 12-3-2008 - ASHOK BHAN AND DALVEER BHANDARI JJ. S.K. Bagaria, Senior Advocate, (A. Mariarputham and Aruna Mathur for M/s. Arputham Aruna Co., Advocates with him) for the appellant. Anoop G. Choudhari and Ms. June Choudhari, Senior Advocates (Manoj Saxena for Guntur Prabhakar, Advocates with them) for the respondent. -------------------------------------------------- The judgment of the court was delivered by ASHOK BHAN J. This judgment shall dispose of Civil Appeal No. 4491 of 2002 filed against a detailed order by which the High Court has dismissed the writ petition filed by the appellant and the three connected appeals which have been filed by the assessees against the dismissal of their writ petitions by the High Court following the impugned order in Civil Appeal No. 4491 of 2002. Facts are taken from Civil Appeal No. 4491 of 2002, which is the main appeal. The relevant period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the State Government issued notification under section 9(1) of the Act in G.O. Ms. No. 1092 dated October 31, 1994 reducing the rate of sales tax to per cent in respect of "bullion and specie (gold)" from the date of the said notification. In order to appreciate the controversy in issue, it would be necessary to refer to the entry in the First Schedule to the Act as well as the notification issued on October 31, 1994. Entry 20 in the First Schedule to the Act reads: FIRST SCHEDULE Sl. No. Description of goods Point of levy Rate of tax Effective from 20. Bullion and specie (1020) At the point of first sale in the State 24 8-7-1983 1-4-1995 (1)Orient Traders v. Commercial Tax Officer, decided on October 10, 1996-Andhra pradesh (2)Report as Orient Traders v. Commercial Tax Officer-I [2001] 123 STC 561 (A). The expression "bullion" in entries 20 and 21 has been defined in Explanation I to the First Schedule which reads: "Explanation I. The expression 'bullion' in items 20 and 21 means pure gold or silver and includes gold or silver mixed with copper, lead or any other kind of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion with reference to the notification issued by the Government under section 9(1) of the Act. It was also contended that the notification was clear and unambiguous and the benefit granted in the notification would be available to the dealers dealing in silver bullion as well. If the G.Os. are interpreted in this manner, then no case was made out to revise the assessment to levy the higher rate of tax. Reliance was placed on a decision of this court in Commissioner of Sales Tax v. Industrial Coal Enterprises [1999] 2 SCC 607 See [1999] 114 STC 365 (SC). As against this, the learned counsel appearing for the Revenue submits that there is no justification to contend that the term "gold" is applicable only to specie and not to bullion. According to him, the interpretation sought to be put by the appellant to the G.O. is not proper and correct. It is submitted that "bullion and specie" is one single phrase and they cannot be bifurcated. The intention of the Government in the said G.O. was to apply the reduced rate of tax to gold bullion and specie only. As these two words constitute one single phrase the word "gold" was bracketed at the end to indicate that it is meant to be appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n entry 56. There are two expressions in this entry which require consideration; one is 'bullion' and the other is 'specie'. Now there is one cardinal rule of interpretation which has always to be borne in mind while interpreting entries in sales tax legislation and it is that the words used in the entries must be construed not in any technical sense nor from the scientific point of view but as understood in common parlance. We must give the words used by the Legislature their popular sense meaning 'that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it'. The word 'bullion' must, therefore, be interpreted according to ordinary parlance and must be given a meaning which people conversant with this commodity would ascribe to it. Now it is obvious that 'bullion' in its popular sense cannot include ornaments or other articles of gold. 'Bullion', according to its plain ordinary meaning, means gold or silver in the mass. It connotes gold or silver regarded as raw material and it may be either in the form of raw gold or silver or ingots or bars of gold or silver. The Shorter Oxford Dictionary gives the meaning of 'bullion' as ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se metal. While issuing Notification No. 1092 dated October 31, 1994, the rate of tax was reduced on the sale of bullion and specie (gold) from two per cent to per cent net. The Legislature used the term "gold" in bracket after expression "bullion and specie" thereby making its intention clear that it wanted to restrict the benefit of reduced rate of tax to gold bullion and specie only. Had the intention been to extend the benefit of reduced rate of tax to silver bullion and specie, then, there was no need to put the word "gold" in bracket after "bullion and specie". The contention that the word "gold" is referable to specie only as it finds mention after the word "specie", cannot be accepted. "Bullion and specie" is one single phrase and the same cannot be bifurcated, as contended by the counsel for the appellant. The intention of the Government in putting the word "gold" in the bracket after the words "bullion and specie" clearly shows that the intention of the Government was to extend the benefit of reduced rate of tax to gold bullion and gold specie only and not to silver. The word "gold" was put in bracket to indicate that the concessional rate of tax is applicable onl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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