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TMI Blog2006 (3) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... ter removing the sand and silt from it and mixing chlorine, the water is purified after filtering the same. Thereafter it is supplied to the general public by the opposite party. The opposite party had issued form IIID during the aforesaid period for purchase of goods which were used in desilting and purification of water. The assessing authority being of the view that the opposite party is not entitled to issue form IIID for such purchases initiated proceedings under section 3G(3) of the Act and vide separate orders imposed tax for misuse of form IIID. The appeals filed by the opposite party had been dismissed by the Assistant Commissioner (Judicial) vide order dated August 24, 1988. Feeling aggrieved by the said order the opposite party preferred second appeal under section 10 of the Act before the Tribunal. The Tribunal by the impugned orders have allowed the appeals and had set aside the orders passed by the assessing authority. I have heard Shri B.K. Pandey, learned counsel on behalf of the applicant and Shri R.M. Saggi, Advocate on behalf of the respondent. The learned Standing Counsel submitted that the desilting, filtration and purification of the water collected by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hold lands and other property and to carry any water or sewerage works through, across, over or under any highway, road, street or place and, after reasonable notice, in writing to the owner or occupier, into, through over or under any building or land; (iii) to abstract water from any natural source and dispose of waste water; (iv) to enter into contract or agreement with any person or body as the Jal Sansthan may deem necessary; (v) to adopt its own budget annually; (vi) to introduce or amend tariff for water supply and sewerage services, subject to approval of the nigam and collect all taxes and charges for these services as may be prescribed: Provided that no decision to introduce or amend such tariff shall be taken except by a special resolution in that behalf brought after giving such notice as may be prescribed, and passed by the majority of two-thirds of the members of the Jal Sansthan; (vii) to incur expenditure and manage its own funds; (viii) to obtain loans, advances, subventions and grants from the Nigam. Section 33 of the 1975 Act deals with the vesting of existing water supply and sewerage services in Jal Sansthan whereas section 34 empower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s obligations connected with water supply and sewerage in a local area. The main activities of the Jal Sansthan is to provide purified drinking water to the citizens and organisation. It has also to look at the sanitation in the local areas. It has not been constituted as an authority for the purpose of buying and selling any goods. Section 3G(2) of the Act excludes the applicability of sub-section (1) of section 3G to the sale of any goods which are purchased by the said department, corporation, undertaking or company for resale or for use in the manufacture or packing of goods other than electrical energy for sale. The question is as to whether the word manufacture used in sub-section (2) of section 3G has to be given the same meaning as has been defined in section 2(e1) of the Act or not. It may be mentioned here that section 2 of the Act which is the definition clause opens with the word in this Act unless there is anything repugnant in the subject or context. Section 2(e1) of the Act defines the word manufacture as follows: Section 2(e1). 'Manufacture' means producing, making, mining, collecting, extracting, altering, ornamenting, finishing, or other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1), any such department, corporation, undertaking or company does not put them to use for its own requirements but uses or disposes of the same either in the manner mentioned in subsection (2) or otherwise, such department, corporation, undertaking or company shall, without prejudice to any other action, including the imposition of penalty, that may be equal to the difference of tax calculated at the rate otherwise applicable to the sale of such goods under this Act and that applicable under sub-section (1). The phrase unless there is anything repugnant in the subject or context came up for consideration before the honourable Supreme Court in the case of Vanguard Fire and General Insurance Company Limited, Madras v. Phraser and Ross reported in AIR 1960 SC 971 and the honourable Supreme Court had held as follows: It is well-settled that all statutory definitions or abbreviations must be read subject to the qualification variously expressed in the definition clauses which created them and it may be that even where the definition is exhaustive inasmuch as the word defined is said to mean a certain thing, it is possible for the word to have a somewhat different meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutory intent. Keeping this in mind we may turn to the purpose and object of section 33C of the Act. This section was enacted for the purpose of enabling individual workmen to implement, enforce or execute their existing individual rights against their employers without being compelled to have recourse to section 10 by raising disputes and securing a reference which is obviously a lengthy process. Section 33C of the Act has accordingly been described as a provision which clothes the Labour Court with the powers similar to those of an executing court so that the workman concerned receives speedy relief in respect of his existing individual rights. The primary purpose of the section being to provide the aggrieved workman with a forum similar to the executing courts it calls for a broad and beneficial construction consistently with other provisions of the Act, which should serve to advance the remedy and to suppress the mischief. It may appropriately be pointed out that the mischief which section 33C was designed to suppress was the difficulties faced by individual workmen in getting relief in respect of their existing rights without having resort to section 10 of the Act. To accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the levy of a tax on the sales or purchase of goods in the State of Uttar Pradesh as stated in the Preamble of the said Act. Section 2(aa) of the Act defines the word business as follows: 2(aa). 'business', in relation to business of buying or selling goods, includes, (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction of buying, selling or supplying plant, machinery, raw materials, processing materials, packing materials, empties, consumable stores, waste or by-products, or any other goods of a similar nature or any unserviceable or obsolete or discarded machinery, or any parts or accessories thereof or any waste or scrap or any of them or any other transaction whatsoever which is ancillary to or is connected with or is incidental to, or results from such trade, commerce, manufacture, adventure or concern; but does not include any activity in the nature of me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sells poultry or dairy products from fowls or animals kept by him shall not in respect of such goods, be treated as dealer. Section 3 of the Act is the charging section. It provides for the payment of tax by every dealer at the rates provided by or under section 3A or 3D on his turnover of sales or purchases or both. Section 4A to section 5 grants exemption, set off, rebate on the sales. Thus under the U.P. Trade Tax Act, tax is levied only on the sale or purchase of goods. Viewed in the light of the principle laid down by the honourable Supreme Court in the aforesaid cases the purposes for enacting section 3G of the Act was to provide for payment of a maximum rate of tax for the time being specified in sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (which is at present four per cent) on the purchase of goods by a department of the Central Government or a State Government, Corporation, undertaking, established under the Central Act or U.P. Act or a Government company which are to be used for non-business purpose, i.e., not for resale or for manufacture and packing of goods for resale. Thus, the underlying object for using the word manufacture in section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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