9911796707
TMI Blog1959 (7) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1953. (2) Whether the Notification No. 10484/45 dated 20th of March, 1950, issued by the State Government under section 2(17) of the Bombay Prohibition Act is valid in law and if so whether it effectively brings the sales by the applicant within the definition of foreign liquor. (3) Whether the said Notification to the extent to which it relates to non-intoxicating liquors and medical preparations containing alcohol is valid and intra vires the State Government's powers under section 2(17) of the Bombay Prohibition Act. The facts of this case are given below: The original applicants M/s. D.P. Dave Co. had been charged sales tax under entry 4 of Schedule II of the Bombay Sales Tax Ordinance (No. 2) of 1952 for the sale of medic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, refer the said question, after deleting the words "and toilet" therefrom, for the decision of the High Court. The question, therefore, which is referred will read thus: "Whether on the facts and under the circumstances of the case, the sales by the applicant of medical preparations containing alcohol have been rightly subjected to tax as sales of foreign liquor under entry 4 of Schedule II of the Bombay Sales Tax Ordinance No. 2 and Bombay Sales Tax Act, 1953. " N.A. Palkhiwalla with S.P. Mehta, for the assessee. M.J. Mistree, for the respondent. JUDGMENT SHAH, J.- Messrs D.P. Dave, who will hereafter be referred to as "the assessees ", are carrying on business of selling drugs in the town of Ahmedabad. Under entry 4 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquor" as defined in clause (17) of section 2 of the Bombay Prohibition Act, 1949, evidently, the assessees were liable to pay the special tax at the rate prescribed by the Act, Second Schedule. The expression "foreign liquor" is defined in clause (17) of section 2 of the Bombay Prohibition Act, 1949, as inclusive of all liquor brought into India by sea, air or land provided that the State Government may, by notification in the Official Gazette, declare that any specified description of country liquor shall, for the purposes of the Act, be deemed to be foreign liquor. By clause (8) of section 2, "country liquor" is defined as inclusive of all liquor produced or manufactured in India, and by clause (24) of section 2, so far as it is materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id medicinal preparations which contain self-generated alcohol prepared by a process of fermentation may be "foreign liquor" within the meaning of the Bombay Prohibition Act and for the purposes of that Act, these preparations are not "foreign liquor" for the purposes of the Sales Tax Act. We are unable to accept that contention. The Legislature has not only included the definition of foreign liquor in clause (17) of section 2 of the Bombay Prohibition Act in the Second Schedule but has provided that the definition shall be read with the proviso enacted by the Legislature under the Bombay Prohibition Act, 1949. It must, therefore, be held that in ascertaining whether a particular substance is foreign liquor, regard must be had not only to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
