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TMI Blog2019 (10) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... tead of residuary Entry No. 39 of Part IV, Schedule II, of the M. P. Vanijyik Kar Adhiniyam, 1994 as in the original assessment ? Facts of the case reveal that M/s. Industrial Utility Company Pvt. Ltd., (presently known as 'Torrent Pharmaceutical Ltd.,) is an ancillary unit providing utilities for pharmaceutical unit namely; ZYG Pharma Pvt. Ltd., Pithampur. The business of M/s. Industrial Utility Co. Ltd., was merged with ZYG Pharma Ltd., and subsequently the later company was also merged with the Torrent Pharmaceutical Ltd., (a Public Limited Company, duly incorporated under the Companies Act). The assessee supplied Steam, DM Water, Distilled Water, Compressed Air and Cooled Air. The assessee deposited tax @ 9.2% under the residuary Entry No. 39 Part IV Schedule II of the M. P. Vanijyik Kar Adhiniyam, 1994 on the pretext that there is no specific entry under any part of the Schedule. The assessing officer passed an order of assessment on 26/12/2016 in Case No. 148/2004 allowing the refund of Rs. 8778.00 The original assessment order was reopened u/S. 28(2), on the basis of an audit objection wherein it was objected that tax should have been levied on the compressed air and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing parameters are to be kept in mind. (i) plain meaning as per entry (ii) Common parlance and common sense / popular test (iii) Scientific and technical meaning (iv) user / change on commercial identity. It has been further argued that by plain reading of Entry 55, it is clear that there is no ambiguity as Entry 55 pertains to "all types of gases such as, Oxygen, Hydrogen etc.," It has been further stated that the word, 'such types of gases' is of significance since it has restricted to the types of goods covered under the Entry. It has been further contended that the expression 'such' means the goods which are akin or similar to or of the type of specific goods mentioned in the later part of the item. Therefore, according to the plain meaning of the entry, only gases like Oxygen, Hydrogen, Nitrogen, Helium and so on, are covered by the entry and by no stretch of imagination, air either in compressed form or in the cooled form can be considered or included in the entry. It has been further contended that air contains a number of particles of Metal, Dust and Carbon as well as other impurities and it is a mixture of number of gases. Heavy reliance has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the respondent State has vehemently argued before this Court that the tax has to be levied upon the compressed air and cooled air by treating it to be under Entry 55 (all types of gases such as Oxygen, Hydrogen etc.) of Part III Schedule II of the MP Commercial Tax Act, 1994. It has been further stated that the words "all types of gases" includes and means, 'air' as well as 'cooled air' and under the word 'etc.,', 'compressed air' and 'cooled air' is subject to levy tax @ 13.8% as there is no other entry under the MP Commercial Tax Act, 1994 for taxing compressed air and cooled air, except the aforesaid entry. It has been stated that the Assessing Officer and the appellate Authority were justified in passing an order of imposing a tax @ 13.8%. Heard learned counsel for the parties at length and perused the record. In the present case, the following substantial question of law has been referred to this Court for an answer : "Whether on the facts and in the circumstances of the case, the M. P. Commercial Tax Appellate Board was right in holding that the commodity compressed air and cooled air has rightly been assessed to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid judgment reads as under: 5. Having regard to the relevance of the language employed in Rule 5(2)(xxvi), it would be appropriate to set out the same over again here. It reads: "Livestock, that is to say, all domestic animals such as, oxen, bulls, cows, buffaloes, goats, sheep, horses etc." The clause opens with the word, 'livestock', but it does not stop there. Had it stopped there, there could be no doubt that day-old chicks or for that matter, older chicks and chicken would have certainly fallen within the ambit of the expression 'livestock' and would have been taxable at purchase point. But the clause proceeds further and restricts the ambit of the expression "livestock" to domestic animals referred to therein. That is the effect of the words "that is to say". The meaning and purport of the words "that is to say" is explained by this Court in Rajasthan Roller Flour Mills Assn. v. State of Rajasthan'. They are words of limitation. In other words because of the use of the said words, the livestock contemplated by the said clause becomes confined to the domestic animals referred to in the said clause. 'Livestock' is, ordinarily speaking, not confine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to the object and purpose of the enactment concerned therein viz., prevention of cruelty to animals. For that reason, cock-fights were held to be covered by the enactment. The principle of this decision cannot be applied mechanically to every situation, more so to a taxing provision like the one concerned herein. The several decisions cited by Shri C. Sitaramiah show that words of this nature are construed having regard to the context and the object underlying the enactment. For example, in Casher v. Holmes14 arising under an enactment levying duties on several articles, 'metals' were construed as not including gold and silver. It was held that gold and silver are popularly referred to as precious metals and not as 'metals'. This brings to our mind another illustration. Diamonds are stones so are there several semiprecious stones used in carvings in marble. They are referred to as precious or semi-precious stones. When one speaks of stones, he does not mean to include 18 (1923) AC 175 : 39 TLR 106 the precious and semi-precious stones therein - unless, of course, the context drives him to do so. Coming back to the popular sense, chicks are referred to as ' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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