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TMI Blog1985 (11) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in holding that 'neel' (ultramarine blue) is not included in the term 'pigment' and is as such taxable at the general rate of 7 per cent?" The dealer-assessee deals in "neel" (ultramarine blue) and chemicals. It is a firm and is registered dealer under the Rajasthan Sales Tax Act, 1954 (No. 29 of 1954) (for short "the Act" herein). In respect of the periods, under consideration, the assessing authority assessed the sale of "neel" (ultramarine blue) by the assessee to sales tax at the rate of 12 per cent by holding that it is a kind of pigment under item No. 18 of Notification No. F. 5(22)FD/CT/70-7 dated 9th March, 1970. The material part of the notification is as under: "In exercise of the powers conferred by section 5 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable only at the general rate of 7 per cent instead of the higher rate of 12 per cent. The assessing authority filed an application under section 15(1) of the Act, for stating the case and refer the question of law arising out of the order of the Board, to this Court for its opinion. The application for making reference for the period 8th November, 1972, to 26th October, 1973, was dismissed on 14th February, 1979. The reason given was that the matter was academic and stood concluded by an earlier decision of the Board. In regard to the period 27th October, 1973, to 13th November, 1974, the Board declined to refer the question of law on the ground that the application in another case has been rejected. Thereafter, reference applications wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether "neel" (ultramarine blue) in which the dealer-assessee has done business, in respect of the aforesaid two periods, is covered by the expression "pigment" used in item No. 18 of the aforesaid notification for taxation purposes. It is well-settled by catena of cases of the apex court of the country that in interpreting the meaning of the words in taxing statutes we should not be guided by their technical and scientific meaning alone but the terms should be understood in the manner in which merchants dealing with them and consumers using them generally understand. In other words they should be understood in the sense in which they are popularly understood by those who deal in them and who purchase and use them. Reference may be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding acrylic and plastic emulsion paints, lacquers including cellulose lacquers, varnishes, glue, polish (other than boot polish), paint-brush, sand-paper, abrasive paper, turpentine oil, bale oil, white oil, double boiled linseed oil, thinners and paint removers of all kinds." It is clear that whatever may have been the controversy as to whether "neel" (ultramarine blue) is included in the expression "pigment" or not, was set at rest by the aforesaid notification and the same has been mentioned as taxable at the rate of 12 per cent. Before the aforesaid notification, by which the ultramarine blue has been specifically mentioned, it cannot be considered as "pigment" under item No. 18 of the notification dated 9th March, 1970. It appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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