Skip to content


Bansilal Phoolchand Vs. Sales Tax Officer and ors. - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtMadhya Pradesh High Court
Decided On
Case NumberM.P. No. 260 of 1975
Judge
Reported in1980MPLJ5
AppellantBansilal Phoolchand
RespondentSales Tax Officer and ors.
DispositionPetition allowed
Excerpt:
.....his innocence. conviction of appellant is liable to be set aside. - the sale of chimneys, therefore, clearly fell under entry 34. it is not necessary for us to decide whether 'glass and glasswares' as used in entry 26 will include chimneys......is a partnership firm. the petitioner sells lanterns and their component parts including glass chimneys. the petitioner contended before the sales tax officer that the glass chimneys sold by it were parts of lanterns and the sales of chimneys would be taxable under entry 34, part ii, schedule ii, to the madhya pradesh general sales tax act, 1958, at the rate of 7 per cent. this contention was not accepted by the sales tax officer and the sales of chimneys were taxed under entry 26, part ii, schedule ii, at the rate of 11 per cent as sales of glasswares. the petitioner preferred an appeal against the order of the sales tax officer before the appellate assistant commissioner of sales tax who also took the same view. the revision preferred by the petitioner was also dismissed by.....
Judgment:
ORDER

G.P. Singh, C.J.

1. The petitioner M/s. Bansilal Phoolchand is a partnership firm. The petitioner sells lanterns and their component parts including glass chimneys. The petitioner contended before the Sales Tax Officer that the glass chimneys sold by it were parts of lanterns and the sales of chimneys would be taxable under entry 34, Part II, Schedule II, to the Madhya Pradesh General Sales Tax Act, 1958, at the rate of 7 per cent. This contention was not accepted by the Sales Tax Officer and the sales of chimneys were taxed under entry 26, Part II, Schedule II, at the rate of 11 per cent as sales of glasswares. The petitioner preferred an appeal against the order of the Sales Tax Officer before the Appellate Assistant Commissioner of Sales Tax who also took the same view. The revision preferred by the petitioner was also dismissed by the Additional Commissioner of Sales Tax. The petitioner then filed this petition under Article 226 of the Constitution.

2. The learned counsel for the petitioner submitted before us that as the chimneys sold by the petitioner could be used only in the lanterns and formed parts of lanterns, their sale was taxable under entry 34 which is a special entry for lanterns and parts thereof. In our opinion, this contention must be accepted. Entries 26 and 34 at the relevant time read as follows :

------------------------------------------------------------------------S.No. Description of goods Rate of tax------------------------------------------------------------------------26. All types of crockery and goods made of glass and 11 per cent.glasswares. 34. Incandescent lamps, lanterns, mantles, stoves andparts thereof. 7 per cent.------------------------------------------------------------------------

The argument of the learned Government Advocate that the words 'parts thereof' as used in entry 34 qualify only the word 'stoves' is not acceptable to us. Read as a whole, it is clear to us that the words 'parts thereof' qualify not only 'stoves' but also 'incandescent lamps, lanterns, mantles'. Chimneys sold by the petitioner could be used essentially in lanterns and constituted their parts. The sale of chimneys, therefore, clearly fell under entry 34. It is not necessary for us to decide whether 'glass and glasswares' as used in entry 26 will include chimneys. Even assuming that standing alone 'glasswares' would include chimneys, in our opinion, entry 26 cannot be construed to include chimneys because chimneys forming parts of lanterns would be covered by the special entry 34.

3. The petition is allowed. The orders of the sales tax authorities in so far as they relate to the assessment of sales of chimneys are quashed. The Sales Tax Officer is directed to assess the sales of chimneys under entry 34, Part II, Schedule II, to the M. P. General Sales Tax Act, 1958. There shall be no order as to costs. The security amount be refunded to the petitioner.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //