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TMI Blog1996 (10) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act and, as such, they are not liable to entry tax under section 3(1)(b) of the Entry Tax Act?" 3.. The non-applicant/assessee is a manufacturer of oil and oil-cake. The Regional Assistant Commissioner of Sales Tax, Ujjain, assessed the dealer to entry tax under the Act for the calendar year 1983 by order dated August 13, 1985. The dealer had shown total purchases of Rs. 8,15,03,318. Apart from this the dealer also maintained a separate account of capital goods showing purchases of plant and machinery worth Rs. 10,26,230 which was not included in the purchases for the purpose of entry tax. This amount of these goods was included by the assessing officer in the total purchases and subjected to entry tax under the Act. The purchase price of plant and machinery was assessed to entry tax at 1 per cent (annexure "B"). The first appeal against the order was rejected by the Appellate Deputy Commissioner of Sales Tax on the ground that these goods, as particularised above, are liable to be categorised as incidental goods (annexure "C"). In second appeal the Tribunal held that the plant and machinery are fixed assets of the dealer and such goods in commercial and industrial terms are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred the question for our answer. 5.. We have heard Shri Surjeet Singh, learned Government Advocate for the applicant/revenue in both these cases. In Misc. Civil Case No. 179 of 1989, we have heard Shri G.M. Chaphekar, learned senior counsel with Shri R. Sodani, for the non-applicant/assessee. In connected Misc. Civil Case No. 120 of 1990, we have heard Shri G.M. Chaphekar, learned senior counsel with Shri S.S. Samvatsar, for the non-applicant/assessee. 6.. The Government Advocate has placed reliance on order passed in (1996) 22 Cur TJ 116 (Union Carbide India Ltd. v. Commissioner of Sales Tax), order dated September 13, 1995 rendered in Misc. Civil Case No. 613 of 1986 [Straw Products Ltd., Bhopal v. Commissioner of Sales Tax, M.P. [1997] 105 STC 391 (MP)] and order dated August 13, 1996, passed in Misc. Civil Case No. 539 of 1984-Madhya Pradesh High Court (Hindustan Electro-Graphites Ltd. v. Commissioner of Sales Tax). 7.. The counsel for the non-applicant submitted that the order passed in case of Union Carbide India Ltd. (1996) 22 Cur TJ 116 contains the reference to order dated September 13, 1995, passed in case of Straw Products Ltd. [1997] 105 STC 391 (MP) and is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Tribunal held as under: "The commencement of business is preceded by the installation of plant and machinery and, therefore, installation of plant and machinery or purchase of plant and machinery are not incidental to the business of manufacturing. The normal procedure of a manufacturing business is that plant and machinery are installed for the purpose of manufacturing and then only the business of manufacture can commence. 'Incidental goods', by its very nature, must take the place of a child, while plant and machinery must take the place of the parents. Inclusion of plant and machinery within the meaning of incidental goods would, therefore, be something like a child without parents, the condition of which cannot exist in practical life. All other goods which are neither raw material nor packing material nor plant and machinery but which are necessary for running the business of manufacture will be covered by the definition by 'incidental goods'. The lower authorities are, therefore, not justified in including plant and machinery in 'incidental goods' and thereby levying entry tax on the purchase price." 11. We proceed to consider the question in both these cases. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k and unknot the problem is the meaningful use of the word "in" at all the places in the definition rather than "for" before the words "the manufacture" or "mining" or "the generation or distribution". By use of the word "in" and omission of the word "for", the Legislature in its wisdom desired to emphasise that incidental goods, exposed to entry tax, would cover only those goods capable of being used "in" the specified activities and not "for" such activities. In other words, goods used for such activities are immune from imposition of tax whereas goods used in such activities are exigible as incidental goods. Same is the position as regards processing. 17.. The dictionary meaning of the word "in" is within, inside of, during, by, through, by means of and of the word "for" is in support of, because of, as regards, concerning, etc. Likewise, the dictionary meaning of the word "incidence" is event, extent, range, etc., and of the word "incidental" is accidental, casual, unimportant. This makes it clear that casual, not usual, and unimportant, not important, goods are taxable, others are not. This is the inbred answer to the question like "to tax or not to tax" with which we began ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took the correct view and committed no wrong in holding that goods in question are not incidental goods. The applicant-revenue is unable to point out any perversity, illegality, infirmity or invalidity in the conclusion. Even in M.P. General Sales Tax Act, 1958 or Central Sales Tax Act, 1956, or Central Sales Tax (Registration and Turnover) Rules, 1957, the position is made clear and clearer by the employment of the word "in" and avoidance of the word "for". That is obviously the material difference between the goods used for and the goods used in the manufacture, etc. The former goods are evidently main goods whereas the latter goods are incidental goods. That is the view of the Tribunal too. 22.. The expression "raw material" is clarified in [1990] 77 STC 282 (SC); AIR 1990 SC 196 (Collector of Central Excise, New Delhi v. Ballarpur Industries Ltd.). No decision is, however, cited as regards the meaning of "incidental goods". It is, thus, a question of appreciation and interpretation of section 2(bb) of the Act as was applicable at the relevant time. 23.. Salmond stated that "by interpretation or construction is meant the process by which the courts seek to ascertain the mea ..... 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