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TMI Blog1990 (11) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustrial machinery determining the total value of the goods brought into the local area for use at Rs. 17,27,664, Rs. 66,978 and Rs. 26,520, respectively. He proposed to levy entry tax on the same and it worked out to Rs. 34,553.28, Rs. 1,339 and Rs. 530.40, respectively. 2.. In the petitions, the said levy was challenged by the appellant on the ground that the proposed levy was not in conformity with the charging section 3 of the Act, since the machineries brought by the appellant for use in his workshop were not meant for consumption, use or sale in the local area. Section 3(1) of the Act reads thus: "3. Levy of tax.-(1) There shall be levied and collected a tax on entry of the scheduled goods into a local area for consumption, use or sale therein at such rate not exceeding two per cent ad valorem and from such date as may be specified, whether prospectively or retrospectively by the State Government and different dates and different rates may be specified for different local areas: .............." 3.. The relevant item for imposing the impugned levy is item No. 7 of the Schedule to the Act which reads thus: "7. Industrial machinery and parts and accessories thereof." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of analogous meaning are coupled together, they are understood to be used in their cognate sense. They take, as it were, their colour from each other, that is, the more general is restricted to a sense analogous to the less general: Maxwell on Interpretation of Statutes, 11th Edition, page 321. The compiling of three words 'consumption', 'use' and 'sale' connotes that the underlying common idea was that either the title of the owner is transferred to another, or the thing or commodity ceases to exist in its original form. Unless it is proved that the wool brought within the limits of the Notified Area Committee, Faridabad, by the appellant was intended to be so employed that it was to cease to be the original commercial commodity and was to become a new commodity or a component of a new commodity, no octroi would be levied by the Notified Area Committee on the entry of wool." In Burmah-Shell Oil Storage and Distributing Company of India Ltd. v. Belgaum Borough Municipality AIR 1963 SC 906; [1963] Supp 2 SCR 216, while tracing the history of octroi and terminal taxes, the Supreme Court in the context of interpreting certain provisions of the Bombay Municipal Boroughs Act consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference is made to Burmah-Shell's case AIR 1963 SC 906; [1963] Supp 2 SCR 216 and also to Anwarkhan Mehboob Co. v. State of Bombay [1960] 11 STC 698 (SC); AIR 1961 SC 213 wherein it is held at para 9 thus: "Consumption consists in the act of taking such advantage of the commodities and services produced as constitutes the 'utilization' thereof." 5.. Mr. Dattu, learned High Court Government Pleader, relying on the aforesaid decisions submitted that the machineries brought into the local area by the appellant have been rightly taxed since the meaning of the term "use" under the charging section should be interpreted as a noun and not as a verb and so interpreted the term "use" cannot be understood to mean as "used up" as contended for the appellant. Besides, he submitted that the decisions in BurmahShell's case AIR 1963 SC 906; [1963] Supp 2 SCR 216 and Anwarkhan's case [1960] 11 STC 698 (SC); AIR 1961 SC 213 are of a larger Bench and therefore the terms "consumption", "use" or "sale" should be understood in the manner laid down in those cases. 6.. However, Mr. K. Srinivasan contended that the decision in Ram Lal Company's case (C.A. No. 869 of 1966 decided on April 3, 1969 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asan also relied on a decision in State of Andhra Pradesh v. Abdul Bakshi and Bros. [1964] 15 STC 644 (SC) in support of the above proposition. 8.. Per contra Sri Dattu submitted that the taxable event was the entry of goods to the local area whether meant for "consumption", "use" or "sale". In the instant case, since the machineries in question were brought by the appellant within the local area for the purpose of using the same for executing job works, the provisions of the Act were attracted in terms of the charging section of the Act and, therefore, the appellant is liable to pay entry tax on the entry of the scheduled goods. Besides section 4(1) provides for registration of dealers, which reads thus: "4. Registration of dealers.-(1) Every dealer who buys or receives scheduled goods and who is doing business in a local area and whose total turnover under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) or, in the case of a person executing works contracts, the gross receipts therefrom or the aggregate of both, as the case may be, during the year is not less than rupees forty thousand shall get himself registered under this Act, in such manner and within such p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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