9911796707
TMI Blog1996 (5) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... "Whether, under the facts and circumstances of the case, the Board of Revenue, was justified in holding that the "wool waste" is included in entry 39 of Schedule 1?" 2.. The non-applicant-assessee deals in manufacture and sale of woollen felts and components made up of wool waste. During the assessment year 1980-81, the non-applicant was assessed at Rs. 15,42,344 the total value of the goods purchased by him during the year. The assessee claimed deletion of Rs. 12,44,826 which, according to him, was the amount spent in purchasing tax-free goods like burs, noils and viscose, etc. The assessing officer (AO) disallowed the claim on the ground that neither of the aforesaid articles fell within the purview of "raw wool" and was, therefore, not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt. This is how the matter has come up before this Court for its opinion on the abovenoted question. 5.. We have heard Shri Surjit Singh, learned Government Advocate for the applicant-department and Shri S.C. Goyal, learned counsel for the non-applicant/ assessee. 6.. Learned Government Advocate contended that the entry No. 39 when construed strictly does not leave any room for construing "wool waste" as "raw wool". He pointed out that all other "woollen articles" not covered by the entry No. 39 are included in another entry No. 11 of Part 111 of Schedule 11 of the Act which, according to the learned counsel, is indicative of the legislative intent to exclude all other woollen goods including wool waste from entry No. 39. As against it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Commercial Tax Officer [1960] 11 STC 827 (SC), held that the residue, after going through the process of acids and chemicals, continued and remained to be groundnut oil and was taxable as such at one per cent. On appeal to the Supreme Court: Held, affirming the decision of the High Court, that the reasoning and conclusions reached by the High Court were correct." 7.. We have given our anxious thought to the rival contentions. We, however, do not feel persuaded by the arguments advanced on behalf of the assessee. 8.. It is well-settled that the taxing statute is to be strictly construed. Justice G.P. Singh in his famous book "Principles of Statutory Interpretation" has in Chapter 10 quoted with approval familiar words of Lord Wensl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erally construed. Similarly when a provision is made permitting concessional rates of tax for the purpose of encouraging an industrial activity, the provision has to be liberally construed. So if the object of an exemption notification is to encourage the use of indigenous rice bran oil and to discourage the use of edible oils in soap manufacture, a narrow construction of the notification which defeats this object cannot be accepted and preference has to be given to a wider construction which promotes the object. As exemption provision cannot be denied full effect by a circuitous process of interpretation. But exemptions which lift the restriction of taxability imposed by an enactment are taxing in nature and are subject to the rule of st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord "raw" as per Oxford English Reference Dictionary means: In the natural state not processed or manufactured; not analysed or processed; new to an activity. Wool waste is obviously not something wholly new or which has not undergone any process. As per assessee s own showing it is an admixture of the bye-products of the raw wool after the latter has undergone some kind of process be it a refinement or something else. It cannot be, therefore, termed as raw wool. 12.. From the foregoing discussion it, therefore, inevitably follows that our answer to the question has to be in negative, i.e., against the assessee and in favour of the department. We answer the reference accordingly but without any order as to costs. 13.. A copy of this ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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