GULATI, J. - (1.) THIS and the connected case are reference submitted by the Additional Judgment (Revisions) Sales Tax, Agra, under section 11(1) of the U.P. Sales Tax Act. The assessment years involved are 1962-63 and 1963-64.
(2.) THE assess M/s. Manohar Glass Works is engaged in the business of manufacture and sale of glass articles at Firozabad. The dispute relates to the rate of tax on the turnover of articles like glass tubes and glass rods. The Sales Tax Officer taxes the turnover of these articles at 7 per cent. treating them to be glassware within the meaning of entry No. 10 of Notification No. S.T.1363/X-1045(1960) dated 5th April, 1961, issued under section 3-A of the Act. On appeal the Assistant Commissioner (Judicial) held these articles to be unclassified items not falling within the aforesaid notification. He, therefore, levied the tax at the rate of 2 per cent. which was the rate under section 3 of the Act at the material time. The Commissioner of Sales Tax applied in revision under section 10 of the Act. Before the Judge (Revisions) it was conceded that the turnover in dispute was not broken pieces of glass rods and glass tube as had wrongly been assumed by the Assistant Commissioner (Judicial), but the glass rods and glass tubes sold by the assessee were whole pieces. However, the Judge (Revisions) thought that this fact made no difference as in his opinion even the whole pieces of glass rods and glass tubes could not be regarded to be "glassware", but were unclassified items taxable under section 3 of the Act at multiple point. The reason why he took this view was that "glassware" meant only finished articles which were sold to the consumers and according to the finding recorded by him glass rods and glass tubes sold by the assessee were in semi-finished state and were sold not to the consumers but to dealers who utilised them as raw material in manufacturing finished articles like test-tubes and toys. He, therefore, affirmed the order of the Assistant Commissioner (Judicial). At the instance of the Commissioner of Sales Tax, the revising authority has submitted two identical statements of case relating to the two assessment years with the following common question of law for the opinion of this court : "In view of the Hindi version of Notification No. S.T.1363/X-1045(1960), dated 5th April, 1961 (which will get precedence in case of difference in meaning) whether glass rods and glass tubes manufactured and sold by the assessee in the circumstances of these cases, are to be taxed as "glassware" (at 7 per cent. single point) or as unclassified items (at 2 per cent. multiple point) ?" Under section 3 of the Act the turnover of every article is taxable at all points of sale at the rate specified in that section. Under section 3-A the State Government has been invested with the power to declare by a notification that the turnover of certain articles shall be taxed at a specified single point in the series of sales in the hands of successive dealers at a rate to be specified in the notification. In exercise of the power the State Government issued Notification No. S.T.1365/X-990-1956 dated 1st April, 1960. Item No. 10 in the list appended to that notification reads as under : "Glasswares other than hurricane lantern chimneys, optical lenses and bottles." The point of tax was the sale by the manufacturer where the goods were manufactured in Uttar Pradesh and the rate of tax was 6 paise per rupee. This notification was subsequently modified by a subsequent Notification No. S.T.1363/X-1045(1960) dated 5th April, 1961, and the only modification made in entry No. 10 was that the rate was increased to 7 paise per rupee.
(3.) THE short question that we are called upon to answer is as to whether glass tubes and glass rods manufactured and sold by the assessee do come within this entry. The term "glassware" according to its dictionary meaning has a wide connotation and includes all articles made of glass. It is now, however, well settled that entries in a notification under the U.P. Sales Tax Act have to be interpreted not in the literal sense but in a commercial sense, a sense in which they would be understood in the commercial world. In the commercial sense the term "glassware" would comprehend only such articles of glass as are finished articles capable of being sold to the consumer. A reference to the other items in the list appended to the notification also bears this out. The articles enumerated in the remaining entries are all finished articles or other parts which are sold to the consumer. Therefore, an article which is in a semi-manufactured stage and has yet to undergo some process of manufacturing or fabrication cannot be said to be an article of glassware even if it is made of glass. In the instant case there is a finding that the glass rods and glass tubes the turnover whereof is in dispute were sold by the assessee not to the consumers but to dealers who used them as raw material in manufacturing or fabricating articles like test-tubes and toys. It is those finished articles that can properly be called "glassware".;