9911796707
TMI Blog2013 (5) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... er order of the Commissioner dated September 4, 2010, reference was made to the criteria laid down in the Prevention of Food Adulteration (PFA) Rules, 1955 and standard prescribed by the Bureau of Indian Standards to the effect that skimmed milk powder should not contain more than 1.5 per cent milk fat and more than five per cent moisture. The product of the petitioner contained 10 per cent fat. While the standard prescribed need not always be conclusive if it is patently against common understanding, such standard could certainly be taken into account to ascertain common sense meaning of a product. There is no material to indicate that milk powder containing 10 per cent fat was to be treated as skimmed milk powder as per understanding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter. The petitioner sought a clarification under section 105 of the Act from the Commissioner of Taxes by submitting that since in the common parlance the product was known as skimmed milk powder, the Department could not take a different stand merely because the product did not have low fat. According to the petitioner, the criteria of low fat could not be applied for declaring the product to be not skimmed milk powder. The Commissioner did not accept this submission vide order dated September 4, 2010 (Rajnikant Brothers v. State of Assam) which was challenged by way of W.P. (C) No. 5915 of 2010. The writ petition was disposed of on July 17, 2012 with the observation that the Commissioner may look into the plea of common parlance test. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in absence of any specific definition under the taxing statute, label given by the petitioner skimmed milk powder had to be accepted by applying the common parlance test irrespective of the fat contained. Referring to the process of manufacture as mentioned in the writ petition, it is submitted that it contains maximum 10 per cent fat and 20 per cent sugar. On due consideration, we are unable to accept the submission. There is no dispute with the legal proposition that common parlance meaning has to be given instead of a technical meaning while interpreting entry in a fiscal statute as the fiscal statues are drafted keeping in mind the common parlance terminology of the goods. However, mere averment that in common parlance a produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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