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2006 (2) TMI 603

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..... nts which are of use for domestic purpose and in a kitchen. If the legislative intent is kept in mind and the meaning of the word utensil as gathered from the aforesaid definition is taken into consideration and the way the entry is worded namely all utensils including and when what is excluded from this definition is expressly stated it is clear that a stove whether it is a LPG stove or kerosene wick stove would fall within the words all utensils and falls within entry No. 5 of the Third Schedule to the Act. In so far as stainless steel vacuum flask is concerned, there should not be any difficulty as it is a vessel which is used for storing beverages like coffee, tea, milk, etc., at a particular temperature which is used by common man in the house or even outside the house. Merely, because a stove or flask is used outside the house also and in hotels and restaurants and in commercial enterprises, it cannot be said that it does not fall within the word utensil . Having regard to the use of a stove or a flask in kitchen by a common man, the use of those items commercially outside the house is negligible. That cannot be the determining factor. Thus, the findings recorded by the autho .....

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..... rd Schedule which came into effect from June 7, 2005 entry No. 5 is substituted in place of earlier entry No. 4, which refers to all utensils including pressure cookers and pans other than utensils made up of precious metals . Thus, the description of the goods at entry No. 5 is far wider when compared to the earlier entry before substitution. The appellant believed that all the goods manufactured by it including pressure cookers, stoves, tavas and flasks would fall within the definition of utensils and would be chargeable at four per cent as per the aforesaid entry to the Third Schedule. However, with a view to seek an advance ruling from the authority filed an application under section 60 of the KVAT Act, seeking an advance ruling on the applicability of rate of tax on the sale of stainless steel LPG stove, kerosene wick stove, aluminium non-stick cookware, stainless steel vacuum flask. Before the authority the appellant contended that in the absence of the definition of the word "utensils" in the KVAT Act, the dictionary meaning of the same would have to be adopted. The meaning of the word "utensils" as per the various dictionaries would mean a tool or an instrument or an implem .....

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..... ot call for any interference. In the light of the aforesaid contentions, the short point that arises for our consideration is, whether the word "utensils" includes a stove and flask? In Shorter Oxford Dictionary the meaning of the word "utensil" has been given as under: "Any article useful or necessary in a house hold; a domestic implement, vessel, or article of furniture; an instrument or vessel in common use in a kitchen, dairy, etc.; any vessel or other article serving a useful end or purpose; a tool or implement used by artisans, farmers, etc." The meaning of the word "utility" as per the aforesaid dictionary reads as under: "A useful thing or feature; a use, an object that can satisfy a human need; anything which can satisfy a human want." In the Chambers Dictionary, the meaning of the word "utensil" has been given as under: "Any useful or ceremonial implement, tool or vessel; fit for use; to use." In Webster's Dictionary, the meaning of the word "utensil" has been given as under: "A vessel, tool, implement, etc.,; serving a useful purpose; especially for domestic or farming use; fit for use." From the aforesaid meaning assigned to the word "utensil" it is clear that the word .....

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..... s made of other metals as well as pressure cookers. In fact, in the Third Schedule prior to its substitution by the Karnataka Value Added Tax (Amendment) Ordinance (1 of 005) which came into effect on June 7, 2005 at entry 4 goods taxable at four per cent were "aluminium" and "enamelled" utensils. However, in he substituted Third Schedule which came into effect from June 7, 2005 in entry No. 5 is included "all utensils including pressure cookers and pans other than utensils made up of precious metals". Thus, the legislative intent is made clear expressly. What is specifically excluded is the utensils made up of precious metals. The tax of four per cent is levied on all utensils including pressure cookers and pans. If we look at the rate of tax payable to different Schedules, there is a total exemption of payable of tax under the KVAT Act in respect of goods mentioned in the First Schedule. Only one per cent is the tax payable in respect of goods to the Second Schedule because the Second Schedule is with respect to precious metal the value of which could be in thousands and lakhs which are normally not used by common man. 20 per cent is the tax levied on goods in respect of the Four .....

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..... a in which the law is in force. If an expression is capable of a wider meaning as well as a narrower meaning the question whether the wider or the narrower meaning should be given depends on the context and the background of the case. In fact, a division Bench of this court in the case of Raja Brick Tile Industries v. Additional Commissioner of Commercial Taxes, Zone-II, Bangalore [2006] 146 STC 124; [2005] ILR Karn 34, has held that the terms and concepts appearing in the taxing statutes require to be understood the way in which they have been defined in the statute and in the absence of such definitions in the statutes, they should be understood in their popular meaning and as understood in commercial or common parlance. They only fortify the understanding in the market parlance, but if they differ from common parlance then the latter will prevail. It is further observed that the intention of the Legislature which is paramount not only requires to be taken note of but also the purpose for which the Legislature intends to levy at reduced rate of tax. It was further pointed out that going by ordinary connotation as also its meaning as understood in commercial parlance and reference .....

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