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TMI Blog1995 (8) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the opposite party. The opposite party is a registered dealer and has been carrying on the business of manufacture and sale of glassware, glass shells, bangles, etc. For the assessment year 1984-85 the opposite party declared turnovers which were accepted by the assessing authority and the books of account were also accepted. The dealer had paid tax at the rate of 8 per cent treating the items as unclassified but the assessing authority treated the goods taxable at the rate of 12 per cent under Notification No. 5784 dated September 7, 1981. The opposite party felt aggrieved and filed the first appeal under section 9 of the Act. The Assistant Commissioner (Judicial) partly allowed the appeal holding that the glass shells manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in this entry for the purpose of including all kinds of goods made of glass. In this connection he has also invited my attention to the definition of the "goods" under section 2 of the Sale of Goods Act, 1930. This general definition given in the Sale of Goods Act runs in the following words: "2(7) 'goods' means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;" This definition of "goods" adopted by the Sale of Goods Act, 1930, has not been accepted in its limited form but it has been enlarged for the purposes of trade tax by giving a new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A general reading of the various entries included in the notification makes it clear by itself that many kinds of goods and articles even though resembling to the taxable entry are excluded expressly or are not included expressly. Therefore the necessity for interpretation arises when a particular article does not correspond to the specific entry and by its own nature it out-classes itself. The learned counsel for opposite party, Mr. Bharat Ji Agarwal, has contended that the principle of interpretation for including or excluding a particular item manufactured and sold by a dealer with reference to the entry in the notification is not based on the literal or grammatical meaning but it is to be understood by the meaning attached to it by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merchant dealing in 'glassware' does not ordinarily deal in such articles, which although made of glass are normally available in medical stores." Mr. Bharat Ji Agarwal also invited attention to another decision of Division Bench of this Court in the case of Commissioner, Sales Tax, U.P., Lucknow v. Manohar Glass Works [1971] 27 STC 51. In this case a question arose whether glass tubes and glass rods manufactured and sold not to the consumers but to dealers who used them as raw materials in manufacturing or fabricating articles like test tubes and toys were to be treated as glassware or not. This Court made the following observations in consonance with the settled principle of interpretation declared by the honourable Supreme Court: "Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Commissioner of Sales Tax, U.P., Lucknow v. P.K. Rajendra Company [1979] 43 STC 228; 1979 UPTC 842. In this case the question whether bars and rods manufactured from copper zinc and tin were included within the item of brasswares classified under the notification. This Court held the principle of interpretation laid down in Manohar Glass Works [1971] 27 STC 51 (All.) and found that bars and rods sold by the assessee were not finished products but were used as raw materials and could not be taxed as brasswares. On the strength of the aforesaid decisions and principle of interpretation Mr. Bharat Ji Agarwal has contended that since the glass shells manufactured and sold by the opposite party not to consumers but to dealers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mi-finished goods and are sold by the manufacturer to another manufacturer for manufacturing the bulbs and only thereafter the bulbs are sold to consumers. In view of this commercial trade practice the glass shells cannot be treated as included within the entry No. 4 of the notification dated September 7, 1981 (supra) and as such the glass shells have been rightly declared as unclassified item attracting a lower rate of tax at 8 per cent. The Tribunal has followed the well-settled principle of interpretation as laid down by the honourable Supreme Court and by various decisions of this Court. I do not find any infirmity in the finding recorded by the learned Tribunal. I answer the question that the glass shells manufactured and sold in semi- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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