9911796707
TMI Blog1962 (11) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... U.P. Sales Tax Act." The question is for assessment of the sales tax for the years 1950-51 and 1952-53. The assessee is a manufacturer of glassware and dealer in glassware, zinc oxide and red lead in Firozabad, which is well-known for its bangle industry. It imports zinc oxide and red lead, uses some in manufacturing glass and sells the rest as a part of its business. Zinc oxide is known popularly as safeda and red lead as sindur. Under Notification No. ST-117/X-923-1948, dated June 8, 1948, issued by the State Government in exercise of the powers conferred by section 3-A of the Act, the State Government have directed that proceeds of sale of the goods entered in the Schedule attached thereto would not be included in the turnover of any d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether pigments are colours or not. Then at the instance of the assessee he referred the above question. There is no doubt that the articles are pigments. In the Railway Tariff Rules both are treated as "dyes and colours" like barium sulphate, copper sulphate and copper oxide. Red lead, which is lead oxide, and zinc oxide are chemicals also. Like barium sulphate and copper sulphate they are pigments and, therefore, come within the phrase "dyes and colours". Certain chemicals are "dyes and colours". It was not contended by Sri Chaturvedi that the two articles are dyes; they are not soluble in water and some other liquids. "Colour", according to dictionaries is "a colouring material and includes a dye, a pigment and a paint": see Webster's, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... colours or for use as colours. The assessee is not a dealer in dyes and colours and had stocked and sold them not as colours but as articles used in glass manufacture. There are many glass manufacturers in Firozabad and the articles are presumably sold to them for use in glass manufacture. According to the Encyclopaedia Britannica, zinc oxide is used in a large proportion in the manufacture of optical glass and tableware in order to impart special properties and not for colouring. Neither optical glass nor tableware is coloured and they remain uncoloured in spite of the other ingredients being mixed with zinc oxide in large proportion. According to Remington and Francis, page 31, zinc oxide is one of the ingredients necessary to make many ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are applied, is to be classified. We do not think that the only rule to be applied to resolve the ambiguity is that every ambiguity should be resolved in favour of the taxpayer. Having regard to the intention of the Legislature to tax sales, any ambiguity as to the category in which an article should be placed should be resolved with reference to its sale. If an article is sold as an article belonging to one category it must be treated as a sale of an article of that category even though it answers the description of another category. The Legislature has fixed different rates for taxation for different categories according to certain principles it has in mind. If a colour is sold it charges sales tax on it at a certain rate, whereas if a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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