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TMI Blog1989 (12) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... arises for consideration in these four revisions is whether the sago and tapioca are food packed and sold under the brand name as contemplated under item 103 of the First Schedule to the Act. According to the learned counsel for the assessee, the assessee has purchased the sago products packed in gunny bags from various registered dealers and he in turn sells them to his customers. The sago has also suffered tax and that it is not liable to be taxed again since it is a second sale which does not warrant taxation. The assessee except affixing the brand name over the gunny bags which were purchased from the registered dealers, does not do anything. Since the assessee sold the sago products in the same condition in which they have been purchased, they would not come under item 103 of the First Schedule. According to the learned counsel, even in ground No. 5 of the Memorandum of Revision in T.C. No. 1245 of 1980 filed by the Revenue, it is stated that if the word "packed" is deleted, the goods are taken away from the scope of item 103 of the First Schedule and, therefore, the earlier order dated 13th June, 1979, which is the subject-matter of the other three revisions, would be infruct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to set out item 103 as it stood during the relevant period of assessment. --------------------------------------------------------------------------- S. No. Description of the goods Point of Rate Effective levy of from tax (1) (2) (3) (4) (5) per cent --------------------------------------------------------------------------- 103. (i) Biscuits, At the point 7 4-3-1974 (ii) Toffees of first sale 8 15-8-1974 (iii) Chocolates, in the State (iv) Confectionery, 10 1-3-1982 (v) Butter, (vi) Ghee, (vii) Cheese, and (viii) Food including prepara- tions of vegetables, fruits, milk, cereals, flour, starch, birds' eggs, meat and meat offals, animal blood, fish crustaceans and molluscs, which- (a) are tinned, canned, bottled or packed; (b) are sold under any brand name registered under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958); and (c) do not fall under item 24. --------------------------------------------------------------------------- It is to be noted that clause (a) was deleted after 10th October, 1979, while making an entry from that date in respect of item 103. Applying the ratio laid down in the abovesaid case, by purchasing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is a wholesale dealer and that he purchased sago products in gunny bags and sold them as such without packing being done but by affixing his brand name, it would not attract item 103 of the Act. The learned Additional Government Pleader is unable to state as to how the order passed by the Tribunal allowing the rectification is erroneous and improper so as to warrant this court to interfere with the same. We do not find any ground to interfere with the said order. In the result, the Tax Cases Nos. 989 to 991 of 1979 are allowed and consequently the disputed turnover is deleted from the taxable turnovers. The revision filed by the Revenue, namely, Tax Case No. 1245 of 1980 is dismissed. No order as to costs. T.C. Nos. 989 to 991 of 1979 allowed. T.C. No. 1245 of 1980 dismissed. Appendix [The judgment of the Division Bench of the Madras High Court consisting of RAMANUJAM and FAKKIR MOHAMMED, JJ., in White Field Ice-Cream, Bakery and Coffee House v. State of Tamil Nadu (Tax Case No. 1681 of 1977 [Revision No. 368 of 1977] decided on 28th April, 1983) is printed below: ] WHITE FIELD ICE-CREAM, BAKERY AND COFFEE HOUSE v. STATE OF TAMIL NADU RAMANUJAM, J.-This revision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ---- (i) Biscuits, At the point 7% up to 14-8-1974 (ii) Toffees, of first sale 8% from 15-8-1974. (iii) Chocolates, in the State. ------------------------------------------------------------------------ (1) (2) (3) (4) ------------------------------------------------------------------------ (iv) Confectionery, (v) Butter, (vi) Ghee, (vii) Cheese, and (viii) Foods including preparations of vegetables, fruits, milk, cereals, flour, starch, birds' eggs, meat and meat offals, animal blood, fish crustaceans and molluscs, which- (a) are tinned, canned, bottled or packed. (b) are sold under any brand name registered under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958) and (c) do not fall under item 24. ------------------------------------------------------------------------ We are not concerned with the turnover relating to biscuits as that has been taken to be assessable at multi-point by the Tribunal. We are, therefore, concerned only with bread and cakes. Bread and cakes will come under sub-item (viii) of item 103 as articles of food. Further to attract item 103 these articles must come under clauses (a), (b) and (c). Clauses (a), (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n entry 37 in the list appended to a notification issued under the U.P. Sales Tax Act, 1948, has been held not to cover edible essence like syrup and that the expression "dyes and colours" used in entry 10 of the notification will not also include edible colours like food colours. The Supreme Court took the view that the words "dyes and colours" used in entry 10 and the words "scents and perfumes" used in entry 37 have to be construed in their own context and in the sense as ordinarily understood and attributed to these words by people usually conversant with and dealing in such goods. This case is an authority for the proposition that the words in a statute dealing with sales tax have to be construed in the sense in which they are popularly understood by those who deal in them and who purchase and use them, and they are also to be construed in the context and setting in which the words occur. In Gujarat Distributors v. State of Gujarat [1975] 36 STC 116, the Gujarat High Court has dealt with the scope of the expression "dyes and chemicals" occurring in entry 4 of Schedule C to the Bombay Sales Tax Act, 1959. Interpreting the scope of the words "dyes and chemicals" the court took t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been explained in Maxwell on the Interpretation of Statutes (12th Edition), at page 289, thus: "Where two or more words which are susceptible of analogous meaning are coupled together, noscitur a sociis. They are understood to be used in their cognate sense. They take, as it were, their colour from each other, the meaning of the more general being restricted to a sense analogous to that of the less general." In the case on hand the word "packed" which is general should be understood in a sense analogous to that of the other words clubbed with it such as "tinned, canned and bottled". The words "tinned, canned or bottled" will denote a process of packing for preservation, transport and sale and they will not denote the mere wrapping or parcelling of articles when they are sold. The words "tinned, canned and bottled" can only mean such packing as is necessary for the preservation and their transport and sale. We have to, therefore, agree with the learned counsel for the assessee that the expression "packed" could take its colour from the words preceding, and therefore, it should take in only such packing which is done for the preservation, transport and sale and will not include m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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