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TMI Blog1974 (7) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... short. Opposite party is a registered dealer doing business in the manufacture and sale of gudakhu both inside and outside the State of Orissa. That means it effected not only internal sales in Orissa but sales in the course of inter-State trade. It did not pay tax both under the Act and the Central Sales Tax Act, 1956 (hereinafter to be referred to as the 1956 Act) on the sale of gudakhu for three quarters ending 30th September, 1967, to 31st March, 1968. The Sales Tax Officer held that during the relevant period gudakhu was exigible to sales tax. An appeal at the instance of the opposite party was allowed by the Assistant Commissioner of Sales Tax, Cuttack Range, who held that tobacco was not exigible to sales tax. The assessments were ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be substituted: 'Tobacco as defined in section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957.' This amendment shall take effect from the 1st July, 1967." 6.. Section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter to be referred to as the 1957 Act) runs thus: "2. Definitions.-In this Act,- (c) the words and expressions 'sugar', 'tobacco', 'cotton fabrics', 'woollen fabrics' and 'rayon or artificial silk fabrics' shall have the meaning respectively assigned to them in items Nos. 1, 4, 19, 21 and 22 of the First Schedule to the Central Excises and Salt Act, 1944." 7.. "Tobacco" as defined in item No. 4 of the First Schedule in the Central Excises and Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bit of "manufactured tobacco" because of its specific non-mention in the list enumerated. 11.. It would be pertinent to remember that "hookah tobacco" as referred to in section 2(f)(i) of the 1944 Central Act is gudakhu. It is placed on the hookah and is used for smoking. The constituents of hookah gudakhu are not very much different from the gudakhu used for cleansing teeth. Gudakhu used for smoking by hookah comes within the meaning of "manufactured tobacco". There is no reason why gudakhu used for teeth would not be construed as tobacco. 12.. It is to be noticed that the definition of "manufacture" in relation to tobacco is an inclusive one. Words used in an inclusive definition denote extension and cannot be treated as restricted in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es within the definition of manufactured tobacco and as such was tax-free. The Assistant Commissioner of Sales Tax and the Tribunal reached the correct conclusion. It is not necessary to refer to the large many authorities cited on either side which do not throw any light on the question in issue. 15.. We would accordingly answer the question referred in the affirmative by saying that gudakhu is covered by the expression "tobacco" as defined in section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and is exempted from tax under the Act and the 1956 Act. 16.. In the result, the reference is discharged with costs. Hearing fee of Rs. 200. B.K. RAY, J.I agree. Reference answered accordingly. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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