Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1999 (8) TMI 941

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... fines and red oxide fines are used as raw material in the manufacture of other goods, dealer can purchase the same against form 37. Subsequently, the notification dated April 1, 1996 was issued by amending item 1 of the Third Schedule to the Act, to which, bauxite, chromite, iron, manganese and other ores including lumps and fines were added by Act No. 5 of 1996. Submission of the learned counsel for the petitioner is, that, before April 1, 1996, lumps and fines cannot be included in the definition of iron ore. It is submitted that, in respect of fines, this Court has already given a decision in the case of Prakash v. State of Karnataka (S.T.R.P. No. 85 of 1981 dated June 25, 1984). 2.. It is submitted that, the inclusive definition which .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... lauses in order to enlarge the meaning of the words or phrases occurring in the body of the statute, and when it is so used these words or phrases must be construed as comprehending, not only such things as they signify according to their natural, import, but also those things which the definition clause declares that they shall include." 3.. On behalf of the department, it is submitted that the word 'including' could be a clarificatory also and reliance is placed on the judgment given in the case of B.P. Krishna Murthy v. State of Mysore [1962] 13 STC 436 (Mys.), wherein, it was observed: "Ordinarily, the word 'including' as contrasted with the word 'namely' imports addition indicating something not already included, whereas the word 'n .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s already mentioned above, the legislature as a result of the amendment, clarified what was implicit in the provisions as they existed earlier. An amendment which is by way of clarification of an earlier ambiguous provision can be useful aid in construing the earlier provision, even though such amendment is not given retrospective effect. We may refer in this context to the observations on page 147 of Craies on Statute Law (Sixth Ed.), which read as under: .......In Cape Brandy Syndicate v. I.R.C. [1921] 2 KB 403 Lord Sterndale, M.R., said: 'I think it is clearly established in Att. Gen. v. Clarkson [1900] 1 QB 156, that subsequent legislation may be looked at in order to see the proper construction to be put upon an earlier Act where that .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he basis of iron contents and size range. Ores above 6 to 10 mm are generally referred as lumps and the rest, i.e., minus 6 mm as fines. The description which has been given with regard to classification of iron ore leads to the conclusion that, ore is a genus which has the specie of lumps and fines, etc. Thus, lumps have to be considered as ore and the contention that the extended definition of "ore" has come from April 1, 1996 should not be made applicable to the period prior to April 1, 1996 is not a correct interpretation of the notification. It is not the extended meaning which could be contemplated by the word "including". Sometime it is also by way of clarification of the meaning and therefore, the decisions which have been relied on .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... terpretation of the Commissioner earlier, whether the petitioner should be denied the benefit thereof. Reliance is placed on the judgment given in the case of UCO Bank v. Commissioner of Income-tax [1999] 237 ITR 889 (SC) wherein, it was observed that, the circulars having the effect recourse to law, cannot be considered as inconsistent with the provision of the statute and binding on the authorities. It is contended by the learned counsel for the department that the circulars have already been withdrawn in accordance with the directions of this Court in the case of M/s. Sree Jagadish Colour Co. v. Commissioner of Commercial Taxes [1997] 107 STC 522; ILR 1996 Kar 2052, where it was observed by this Court that the Commissioner cannot exercis .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates