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TMI Blog2011 (8) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... sional authority contained in annexure P2 and P3 dated April 7, 2001 and annexure P8 dated September 30, 2002 are hereby quashed. The respondents are directed to refund the tax collected in excess for the relevant period along with interest at the rate of six per cent per annum - Writ Petition No. 3020 of 2003 - - - Dated:- 3-8-2011 - ALAM S.R. C.J. AND ALOK ARADHE J. H.S. Shrivastava, Senior Counsel with Abhijeet Shrivastava and Sandesh Jain for the petitioners Naman Nagrath, Additional Advocate-General, for the respondents ORDER The short question which arises for consideration in the instant writ petition is whether GRD powder and GRD bix would fall within the expression non-alcoholic drink and beverage as employed by the Legislature in entry 20(ii) of Part IV of the Second Schedule of the Madhya Pradesh Commercial Tax Act, 1994 (hereinafter referred to as, the 1994 Act ) and under entry 14 of Schedule II of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as, the Entry Tax Act ), so as to attract a higher rate of tax at ten per cent and two per cent, respectively. Facts necessary for determinatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the 1994 Act are read in its entirety it is clear that beverage has to be in liquid form. He has also been argued that it is a well-settled principle of statutory interpretation that if certain words are used in the statute which are capable of construed in a popular sense their common parlance meaning has to be taken into account. It has been further argued that in order to fall under the special entry, item should clearly come within the ambit and scope of the entry failing which it will fall under the residuary entry. In support of his submissions learned senior counsel has relied on the decisions of the Supreme Court reported in Commissioner of Central Excise, Mumbai v. Amur Dye and Chemical Ltd. [2003] 1 STJ 318 (SC), Commissioner of Sales Tax v. Food Specialists Ltd. [1995] 97 STC 407 (Bom), Brooke Bond India Limited v. State of Kerala [1992] 84 STC 334 and Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. P. Sukumaran [1989] 74 STC 185 (Ker). On the other hand Mr. Naman Nagrath, learned Additional Advocate-General, has taken us through the orders passed by the Assistant Commissioner as well as the order passed in revision by the Additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble consideration are entirely out of place. Nor can taxing statutes be interpreted on any presumptions or assumptions. The court must look squarely at the words of the statute and interpret them. It must interpret a taxing statute in the light of what is clearly expressed ; it cannot imply anything which is not expressed ; it cannot import provisions in the statute so as to supply any assumed deficiency.' And K. Iyer, J., more recently observed : 'Taxation consideration may stem from administrative experience and other factors of life and not artistic visualization or neat logic and so the literal, though pedestrian interpretation must prevail.' Before taxing any person it must be shown that he falls within the ambit of the charging section by clear words used in the section. Therefore, if the words used are ambiguous and reasonably open to two interpretations benefit of interpretation is given to the subject. The question which arose for consideration before the Supreme Court in Commissioner of Central Excise, Mumbai v. Amar Dye and Chemical Ltd. [2003] 1 STJ 318 (SC) was whether Sharbat Rooh Afza can be treated as beverage. In the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2006] 144 STC 210 (Ker), the Full Bench of the Kerala High Court held that in a generic sense any potable liquid except water is a beverage . From perusal of the language employed by the Legislature in entry 20(ii) of Part IV of the 1994 Act, the intention of the Legislature is clear that an item in order to fall under the aforesaid entry has to be in the liquid form which is manifest from the words beverages including syrups, cordials, distilled juice, ark and essences when sold in sealed or capsuled or cork bottles or jars . In South Bihar Sugar Mills Ltd. v. Union of India AIR 1968 SC 922, it has been held that Act does not define goods, the Legislature must be taken to have used that word in its ordinary, dictionary meaning. The dictionary meaning is that to become goods it must be something which can ordinarily come to the market to be bought and sold and known to the market. In order to ascertain meaning of word beverage in common parlance, we may refer to its meaning as described in dictionaries, as the same has not been described in the Act. In Random House Unabridged Dictionary, Second Edition, word beverage has been described to mean any potable liquid especially o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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