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TMI Blog1974 (5) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment for the 4th quarter ending on 31st October, 1959, the assessee raised the contention that the sum of Rs. 17,80,028 realised by the assessee from sale of barley powder in sealed containers should be exempted from tax as barley powder comes within flour mentioned in item No. 2 of the schedule of exemptions appended to the Act. It is to be noted that this contention was raised for the first time in appeal preferred by the assessee before the Assistant Commissioner against the order of the Commercial Tax Officer. The Assistant Commissioner did not accept the contention of the assessee and by his order dated 16th January, 1965, held that "flour" mentioned in item No. 2 of the schedule did not include "barley powder". Against the aforesaid order of the Assistant Commissioner of Commercial Taxes, the assessee filed a petition for revision before the Commissioner of Commercial Taxes, West Bengal. The Additional Commissioner of Commercial Taxes observed in his order dated 25th April, 1966, that nobody would include barley in the term "flour" either in common parlance or in trade circles and dismissed the assessee's petition. The assessee then filed a further revision petition befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which necessarily include barley are dealt with in item No. 1 of the schedule. Item No. 2, according to Mr. Dutt, makes provision for all kinds of cereals which have been crushed into powder resulting in "flour", which really means "finely-ground meal of the cereal". It is the argument of Mr. Dutt that the word "flour" in item No. 2 has been used to include the finely-ground meal of every cereal and is not intended to remain confined to only the finely-ground meal of wheat, as, according to Mr. Dutt, if that had been the intention of the legislature, the legislature would have specifically mentioned "wheat flour". Mr. Dutt submits that it is undoubtedly well-settled that these words in the schedule should normally be given the popular meaning and should not be construed in any botanical or technical sense. Mr. Dutt, however, contends that if it is not possible to attribute the popular meaning to the word or if there be something in the enactment which goes to show that the legislature did not intend to attribute the popular meaning to the word used, the popular meaning should not be given and, in such a case, the dictionary meaning of the word should be adopted. Mr. Dutt argues th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready given to the said word by this court and the other High Courts, this court should construe the said word to mean "finely-ground meal of wheat or other grains" and the word flour should therefore include powdered barley. Mr. Dutt contends that if the said word "flour " is capable of having both the meanings, namely, its popular meaning of "maida" and its dictionary meaning of "finely-ground meal of wheat or any other grain"--and it is the contention of Mr. Dutt that, in view of the construction already given by the High Courts, the said word should be construed to be capable of both the said meanings-the said word occurring in a taxing statute should be so construed as will give relief to the dealer and will be beneficial to the assessee. In support of this submission that if any word in a taxing statute is capable of two constructions, that construction which is beneficial to the taxpayer should be given, Mr. Dutt has relied on the following decisions: Commissioner of Income-tax, Bombay City v. Elphinstone Spinning and Weaving Mills Co. Ltd.[1960] 40 I.T.R. 142 (S.C.)., Commissioner of Income-tax v. Jalgaon Electric Supply Co. Ltd. [1960] 40 I.T.R. 184 (S.C.)., Hansraj Gordh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of flour occurring as item No. 2 in the schedule. Mr. G.N. Roy, the learned Advocate appearing on behalf of the revenue authority of the State, has submitted that the sales tax authorities have rightly imposed tax on powdered barley sold by the dealer-assessee, the applicant herein, in sealed containers, as powdered barely can never be understood to mean flour within the meaning of the said word in item No. 2 of the schedule containing the exemptions and powdered barley cannot be considered to be covered by the said item of exemption. Mr. Roy submits that it is well-settled that in construing any word occurring as an item of exemption in any Sales Tax Act, the word unless otherwise defined in the Act should be construed neither in the technical sense nor-from the botanical point of view but it should be understood as in common parlance. In support of this submission, Mr. Roy has referred to the recent decision of the Supreme Court in the case of Mangulu Sahm Ramahari Sahu v. Sales Tax Officer, Ganjam[1973] 32 S.T.C. 494 at 495 (S.C.); A.I.R. 1974 S.C. 390 at 391., and he has placed particular reliance on the following observations: "This court had occasion to consider the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is indeed of no consequence and the said amendment has been introduced by way of abundant precaution to make the position absolutely clear. Mr. Roy has argued that the introduction of item No. 52 in the schedule by the notification dated 26th April, 1968, has really no bearing in construing item No. 2, and the said item No. 52 deals specifically with barley products and, in dealing with barley products, mentions "'flour', suji, atta and dalia made from barley". Mr. Roy argues that in view of the specific mention of barley products in the said item there is no question of giving any other meaning to the said word and the said item No. 52 refers to barley and the different products of barley and indicates that there may be flour of barley and also atta, suji and dalia of barley. Mr. Roy has submitted that though the dictionary meaning of the word "flour" has been referred to in the decision cited by Mr. Dutt, in no case the meaning which is not in accord with the meaning in its popular sense or in which it is understood in common parlance has been given to the said word "flour". Dealing with the decision of Banerjee, J., in Lakshminarayan Rice Mills v. Assistant Commissioner of Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems of atta, suji and bran, which are known and recognised in this State to be types of wheat products but are not understood to come within the popular meaning of the word "flour ", would not otherwise enjoy exemption from sales tax as these items would not be covered by the word "flour", and the legislature to grant exemption to these items has specifically provided that flour will also include these three items. Mr. Roy argues that the provision in the schedule that flour includes also these three items clearly emphasises that the legislature intended that the word "flour" should be understood in its popular sense of "maida" (wheat flour) only, as otherwise there would be no necessity of including these three items which will all necessarily be "finely-ground meal of wheat or other grain", according to the particular meaning of the dictionary, relied on by Mr. Dutt. It is to be noted that the word "flour" is not defined in the Act. The said word, though an English word, is a word of everyday use. The said word should therefore be construed in its popular sense. The said word must be construed neither in a technical sense nor from the botanical point of view. It should be unders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emphasise on the popular sense of the word "flour", namely, "maida" (wheat flour) and as the said three items could not come under flour in its popular sense of "maida" (wheat flour), the legislature with the intention of exempting these three items from tax has specifically included these three items to come under the item "flour", as otherwise these three items would not be covered by the word "flour" and would not be included within the popular meaning of the word "flour". Powdered barley in common parlance is never considered to be flour and flour in its popular sense never means powdered barley. The dictionary meaning referred to and relied on by Mr. Dutt is also of no great assistance. The dictionary meaning gives the meaning or sense in which it is understood in the English speaking world and even, according to the dictionary meaning in modern times, flour is understood to mean only wheat flour. In Shorter Oxford English Dictionary, 3rd edition, at page 720, the word "flour" is stated, inter alia, to mean: "Orig. the finest quality of meal; hence, the finer portion of meal (wheat or other) which is separated by bolting. Also, in mod. use, the meal of wheat as opp. to that fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground meal of any powdered grain", which may include powdered barley, does not arise. The subsequent amendment introduced in 1963, amending the said words "flour, including atta, suji and bran" in item No. 2 of the schedule and substituting in its place, "wheat flour including atta and suji" does not establish that the word "flour" in item No. 2 before its amendment was capable of being construed in the wider sense to mean "finely-ground meal of any grain" including powdered barley. In common parlance, as we have already indicated, nobody will ever understand flour to mean powdered barley. The said amendment, to my mind, has been introduced by way of abundant precaution as contended for by Mr. Roy and is really of no material consequence. The subsequent introduction of item No. 52 in the schedule providing for barley products, namely, flour, suji, atta and dalia made from barley merely describes the various kinds of barley products. The said item only indicates that there may be flour of barley also. The said item No. 52 is, however, of no assistance, in construing the word "flour" in item No. 2. On the other hand, the specific mention of barley and the various products of barley ..... X X X X Extracts X X X X X X X X Extracts X X X X
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