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TMI Blog1979 (11) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... his business for some time. They are also registered dealers within the meaning of the Bengal Finance (Sales Tax) Act, 1941 (as extended to the Union Territory of Delhi). Their turnover of sale of hair-oil has been taxed at the rate of 8 per cent by the Sales Tax Officer during the assessment for the year 1968-69 by treating hairoil as a cosmetic falling under entry 17 of the First Schedule to the aforesaid Act. This entry reading "cosmetics, but not including kum kum and soap", was included in the First Schedule to the Act with effect from 1st September, 1966, vide Notification No. F. 4-187-164 Finance (E)(i) dated 31st August, 1966, published in the Delhi Gazette, Extraordinary, Part IV. Till the assessment year in question, by virtue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a tax of 8 per cent. Taxable turnover of items not falling in the First Schedule and the Third Schedule invite a tax of 5 per cent. By virtue of the provisions of section 6, turnover of items falling in the Second Schedule are exempt from taxation, subject, of course, to certain conditions being fulfilled. We are concerned only with entry 17 of the First Schedule, which has already been read. The first contention on behalf of the assessees is that circulars issued by the department have a binding effect and revision of tax contrary to those circulars is against law. Indeed, it is urged, circulars have even a retrospective effect, as the rigour of taxation can be reduced by the issue of a circular, which is in the nature of a beneficial ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and any assurance that it would not be collected, would not bind the State Government, whenever it chooses to collect it. The sales tax department, unless so authorised by law, cannot change the law or give any benefit unless authorised to do so. Departmental instructions cannot affect the operation of the law, much less retrospectively. We need only refer to Instalment Supply (Private) Ltd. v. Union of India[1961] 12 S.T.C. 489 (S.C.)., in which the law has been clearly laid down by the Supreme Court. So much with regard to the advantage that the assessees sought to take from the earlier circulars of the department and their contention that beneficial circulars should be held binding and even having retrospective effect. We now come to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dictionary (Second Edition) defines "cosmetics" as "an external application intended to beautify and improve the complexion, skin or hair". The Oxford English Dictionary defines the term "cosmetics" as "a preparation intended to beautify the hair, skin or complexion". Encyclopaedia Britannica says that cosmetics are substances especially prepared to improve, beautify and generally increase the attractiveness of the person; cosmetics preparations are, therefore, intended to promote the health and beautifying of the complexion, hair, hands and nails. We need not refer to any more definitions. The definitions quoted above thus show that the term "cosmetics" is a general term which would include all articles intended to beautify, adorn, protec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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