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TMI Blog1983 (2) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... at word in entry 19 of Schedule E to the Bombay Sales Tax Act, 1959, and were liable to tax accordingly. From these decisions the respondents preferred appeals before the Sales Tax Tribunal being Appeals Nos. 3 and 4 of 1971. The Tribunal, by its common judgment in both the appeals dated 14th April, 1972, sent back the cases to the Commissioner for a fresh decision after considering the fresh evidence that the respondents may produce. The respondents were also given permission to produce whatever evidence they desired before the Commissioner. Thereafter, a fresh hearing was given by the Commissioner to the respondents and the Commissioner considered the fresh evidence produced by the respondents before the Commissioner. The Commissioner held that sandalwood and sandalwood oil were perfumes within the meaning of entry 19 of Schedule E of the Bombay Sales Tax Act, 1959. Against this decision the respondents preferred Appeals Nos. 27 and 28 of 1974 before the Tribunal. By a common judgment in both the appeals the Tribunal came to the conclusion that both sandalwood and sandalwood oil were not covered by entry No. 19 of Schedule E and would fall under the residuary entry 22 of Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strued with reference to the words found in immediate connection with them. When two or more words which are capable of being understood in an analogous manner are coupled together, they should be understood in the common analogous sense and not in a general sense. Applying this rule of noscitur a sociis the word "perfumes" in entry 19 must be construed in conjunction with cosmetics and depilatories but excluding certain toilet articles to refer to such articles which can be used as perfumes in personal toilet. In other words, "perfumes" in entry 19 refers to such preparations as are commonly known in the market for use on the body as perfumes. In this connection a reference may be made to a decision in the case of A. Boake Roberts and Co. (India) Ltd. v. Board of Revenue (C.T.), Madras reported in [1978] 42 STC 270. The Madras High Court was required to consider in that case entry 51 in the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, prior to its amendment by Act 7 of 1977. The relevant entry 51 described the goods as "scents and perfumes, powders, snows (including all purpose creams and cold and vanishing creams) and scented hair oils". The Madras High Court he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which has been distinguished by the Madras and Punjab and Haryana High Courts in the above decisions. The Supreme Court was required to construe the word "perfume" in item 37 of Notification No. 905/X dated 31st March, 1956, issued under section 3-A of the U.P. Sales Tax Act, 1948. Item 37 of the notification was "scents and perfumes (in English) Itra tatha sugandhian (in Hindi)". The question before the Supreme Court was whether "dhoop" and "dhoopatti" fell within the category of perfumes in item 37. The dispute before the Supreme Court in that case centered around the question whether the word "perfume" should be confined only to those objects which emit an agreeable odour in their natural state. It was submitted before the Supreme Court that "dhoop" and "dhoopatti" were not perfumes because they do not emit any agreeable odour in their natural state, but only after heat is applied to these items and fumes are emitted which fumes give an agreeable odour. The Supreme Court rejected this argument. It considered the etymological meaning of the word "perfume" as originating from the latin word "fumare" which means "to smoke" or "to emit vapour" and held that the word "perfume" in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ume within the meaning of entry 51 of the First Schedule to the Madras General Sales Tax Act, 1959. The Madras High Court in that case held, inter alia, that sandalwood oil as sold in the market does not vaporise readily, to serve the purpose of a common perfume. It has to be rubbed hard on the hand or some other part of the body so that the temperature can be raised by friction and better vaporisation takes place. Therefore sandalwood oil has to be used in mixture with other substances like oil or alcohol or soap so that the resultant product can emit the peculiar perfume characteristic of sandal. Because sandalwood oil could not be used in its natural state as a perfume, the court held that it could not be classified as a perfume. This part of the reasoning of the Madras High Court can no longer be considered as valid in view of the decision of the Supreme Court in the case of Indian Herbs Research and Supply Co. [1970] 25 STC 151 (SC). 6.. In the present case however, the relevant entry does not deal with scents and perfumes in isolation as in the case of the relevant entry in the case of Indian Herbs Research and Supply Co. [1970] 25 STC 151 (SC), which the Supreme Court was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tageously be blended in small quantities where the dominant odour of sandalwood is not desired." It would thus appear that sandalwood oil is mainly used as a fixative in the preparation of perfumes, that is to say, it is used for the purpose of holding the perfume so that the fragrance will last for a long time after evaporation of the solvent such as alcohol. The respondents also relied upon a letter dated some time in February, 1971, addressed by V.P. Anantanarayan, Joint Agricultural Marketing Adviser to the Government of India, Ministry of Food and Agriculture, C.D. & Co-operation, addressed to M/s. Sorabji Nowroji & Co. In it he has stated that ".........sandalwood oil cannot be called a perfume on its own. It is used in the perfumery industry to a greater or lesser extent. The characteristics of sandalwood oil referred to in the brochure on the marketing of sandalwood and its oil in India (Marketing series No. 128), referred to by you in your letter itself shows that it is a good vehicle only for high-class perfumes and its own value as a perfume is insignificant". The evidence produced also shows that sandalwood oil is used in ayurvedic medicinal preparations. In modern me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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