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TMI Blog1985 (8) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... .C. Nos. 1222, 1521 and 1559 of 1983 (R) and C.W.J.C. Nos. 122, 123, 176, 442, 444, 499, 753, 768 and 1325, 117, 312 of 1984 (R) and C.W.J.C. No. 1376 of 1983(R) relate to the benefit claimed under Notification No. S.O. 1145 dated 31st December, 1980, whereas C.W.J.C. Nos. 1321, 1290, 756 and 1314 of 1984(R) relate to similar benefit with respect to inter-State trade and commerce said to have been conferred by Notification No. S.O. 639 dated 16th April, 1982. 3.. In C.W.J.C. No. 155 of 1984(R) the petitioner has claimed the benefit of both the notifications. 4.. M.J.C. No. 37 of 1984(R) is an application for initiation of contempt of court proceeding for violation of some directions given by this Court in C.W.J.C. No. 1521 of 1983 (R), whereas M.J.C. No. 38 of 1984(R) relates to initiation of similar proceeding with respect to C.W.J.C. No. 155 of 1984(R). 5.. Since a common question of law arises in all these writ applications, I have taken up the cases together for convenience and this judgment will govern all the cases. 6.. It may be stated here that the benefit conferred under Notification No. S.O. 1145 dated 31st December, 1980, relates to the adjustment of tax paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bihar Sales Tax Third Ordinance, 1980 (Bihar Ordinance No. 115 of 1980) as amended by the Bihar Sales Tax (Amendment) Ordinance, 1980 (Bihar Ordinance No. 165 of 1980), the Governor of Bihar, on being satisfied that it is necessary to do so in the interest of industrial growth, is pleased to permit every registered dealer who is a manufacturer and is running an industrial unit of the catgory and description mentioned respectively in columns 2 and 3 of the Table below, to adjust the amount of tax paid on the purchase of raw materials used in the manufacture of goods for sale within Bihar against the tax payable on sale of finished products in Bihar in the manner indicated in paragraph 2 of this Order. Table ---------------------------------------------------------------------------- Sl. No. Category Description ---------------------------------------------------------------------------- 1. Industrial units in small sector. The unit, if having gone into production prior to 1st October, 1979, should not be availing of any concession of tax-free purchases of raw materials under any notification issued under the Industrial Incentive Scheme of the State Government and, if h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent of the amount of tax actually payable on sales within Bihar. (C) ---------- This Order shall be deemed to have come into force with effect from the 1st October, 1979, and shall remain in force till 31st March, 1984. By Order of the Governor of Bihar (Sd.) Illegible Commissioner and Secretary to Government, Government of Bihar, Finance (Commercial Taxes) Department." "ORDER Dated the 16th April, 1982. S.O. 639.-In exercise of the powers conferred under sub-section (1) of section 23 of Part I of the Bihar Finance Act, 1981 (Bihar Act No. 5 of 1981), the Governor of Bihar, on being satisfied that it is necessary to do so in the interest of the industrial growth, is pleased to permit an industrial unit established as per procedures and conditions laid down in Finance (Commercial Taxes) Department Order No. S.O. 1145 dated 31st December, 1980, and registered under the aforesaid part, to adjust the amount of tax paid on the purchase of raw material in the State and used in the manufacture of goods for sale in course of inter-State trade and commerce against the tax payable under the said part in the manner so prescribed. 2.. The procedure laid down in Finance (Commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4th May, 1984, and was published in the Bihar Gazette on 14th May, 1984, and came into force with effect from 1st April, 1984, to remain in force till 31st of March, 1985 (see 1985 BLT Part IV-25). The principal part of this notification is the same, but the description part entitling to the benefit which is relevant for my purpose reads as follows: "The unit, if having gone into production prior to 1st April, 1984, have not availed of any concession of tax-free purchase of raw materials under any notification issued under the Industrial Incentive Scheme of the State Government, and if having gone into production on or after 1st April, 1984, should not have opted for the concession of tax-free purchase of raw materials." It is no doubt true that Notification No. 614 dated 14th May, 1984, which came into force from 1st April, 1984 and purported to continue the benefit conferred by earlier notifications, support the view of Revenue propounded before me, viz., have not availed of any concession of tax-free purchase of raw materials *Words in Hindi are transliterated in English. under any notification issued under the Industrial Incentive Scheme of the State Government. Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1949] 1 AER 865, 868, "it is not the function of a court of law to give to words a strained and unnatural meaning, because had the legislature thought otherwise they would have used appropriate words for the same". Lord Reid said, "It is sometimes said that we should apply the spirit and not the letter of the law so as to bring in cases which, though not within the letter of the law, are within the mischief at which the law is aimed. But it has long been recognised that our courts cannot so apply taxing Acts" (Inland Revenue Commissioners v. Saunders [1958] AC 285). 16.. Generally four principles are applied for interpretation of statutory provisions; provisions creating substantive rights or taking away substantive rights are prospective, unless by express words or by implication it has been made retrospective; the intention of the legislature has to be gathered from the words used by it, giving to the words their plain, normal, grammatical meaning; if in any legislation the general object is to benefit a particular class of persons and the provision is ambiguous in the sense capable of two meanings, one which would preserve the benefit, should be adopted; if strict grammatica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67 (Pat); 1985 BLT 91 that "it is a settled rule of construction of taxing statutes that one does not easily tend to the extension of a class privilege of exemption from the general rule of taxation unless the language of the statute is unequivocal and categoric and admits of no other interpretation", I approach the rival contentions with respect to the correct interpretation of the words "should not be availing" of any concession of tax-free purchase of raw materials under any notification issued under the Industrial Incentive Scheme of the State Government". 20.. At the outset, it may be mentioned that I am not dealing with an exemption notification under section 4(3)(b) of Bihar Sales Tax Act, 1959, which dealt with the topic "Exemption" but a newly added provision under section 20A of the Bihar Ordinances 115 of 1980/165 of 1980 and section 23 of Bihar Finance Act, 1981, which deal with the topic "Adjustment of tax" incorporated for the first time in the interest of industrial growth of the State. The impugned notifications, therefore, are not exemption notifications from the payment of general sales tax and/or sales tax, therefore, the observation of Lord Young in Hogg. v. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or section 22 or 23 of the Bihar Finance Act, 1981. As there is no ambiguity in the language used and/or the words capable of another meaning, I cannot bend or modify the words used and replace it as "have not availed". This will be really re-enacting the provision, which is beyond the court's power. 22.. Notification dated 16th April, 1982, does not need a separate consideration inasmuch as the procedure laid down for adjustment of tax obtainable for the benefit of this notification is the same as laid down in the notification dated 31st December, 1980. Under this notification an industrial unit falling in the enumerated category has been provided to adjust the amount of tax paid on the purchase of raw materials in the State and used in the manufacture of goods for sale, to adjust towards the liability accruing under the Central Sales Tax Act, for the sale of those manufactured goods in course of inter-State trade and commerce. Therefore, the interpretation made with respect to the notification dated 31st December, 1980, is equally applicable to the notification dated 16th April, 1982. 23.. From the discussions aforesaid I am of the opinion that ordinary, natural and gramma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. These words have not been used for those who have gone into production on or after 1st October, 1979. This is the plain and literal interpretation of the words used in the second part of the said notification and the court in a taxing statute is required "to look merely at what is clearly said" with no room for equity. 25.. M.J.C. Nos. 37 and 38 of 1984 (R) were not pressed at the time of hearing of their respective main petitions by the learned counsel appearing for the petitioners and are accordingly dismissed. 26.. In the result all the writ petitions are allowed in the light of the observations aforesaid with the exception of C.W.J.C. No. 753 of 1984 (R) and C.W.J.C. No. 756 of 1984 (R) which are dismissed with the observation made in paragraph 24 of this judgment. Similarly M.J.C. Nos. 37 and 38 of 1984 (R) are also dismissed for having not been pressed. Penalty imposed in C.W.J.C. No. 155 of 1984 (R) is set aside. Respondents are directed to consider the cases of the petitioners and give effect to the two notifications dated 31st December, 1980, and 16th April, 1982, as interpreted by this judgment, and give relief to the petitioners provided they fulfil the factual ..... X X X X Extracts X X X X X X X X Extracts X X X X
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