SINGHBHUM TOBACCO AND BIRI MERCHANTS ASSOCIATION Vs. ASSISTANT SUPERINTENDENT OF SALES TAX
LAWS(PAT)-1960-7-17
HIGH COURT OF PATNA
Decided on July 26,1960

THE SINGHBHUM TOBACCO, BIRI MERCHANTS' ASSOCIATION Appellant
VERSUS
ASSISTANT SUPERINTENDENT OF SALES TAX Respondents


Cited Judgements :-

DILIP KUMAR MUKHERJEE VS. COMMERCIAL TAX OFFICER [LAWS(CAL)-1963-3-12] [REFERRED TO]
G AZEEZ BASHA AND CO VS. SALES TAX OFFICER [LAWS(ORI)-1971-9-6] [REFERRED TO]


JUDGEMENT

Ramaswami, Kanhaiya Singh - (1.)In this case petitioner No. 2. Kumar Brothers (Biri) Private Limited, is a firm carrying on the business and trade of biri at Chakradharpur. It is alleged that petitioner No. 2 manufactures biri from tobacco by a process of manual labour and not with the aid of machines. For the period from the 14th December, 1957, till the 30th June, 1958, the Assistant Superintendent of Sales Tax at Chaibasa called upon petitioner No. 2 to submit a return of turnover of biris for the purpose of imposing sales tax under the provisions of the Bihar Sales Tax Act. Petitioner No. 2 objected that no sales tax was leviable on the sale of hand-made biris. The objection was overruled by respondent No. 1. The petitioners have accordingly moved the High Court for grant of a writ under Article 226 of the Constitution restraining the respondents from imposing sales tax for the period from the 14th December, 1957, to the 30th June, 1958, with respect to the sale of hand-made biris.
(2.)On behalf of the petitioners learned counsel submitted that the sale of hand-made biris was exempt from taxation under the notification of the Government of Bihar, Finance (Commercial Taxes) Department no. STGL-P-601/57-18422 F.T., dated the 14th December, 1957, which reads as follows :- Notification Patna, the 14th December, 1957. STGL-P-601/57-18422 F.T.-In exercise of the powers conferred by Section 7 of the Bihar Sales Tax Act, 1947 (Bihar Act XIX of 1947), the Governor of Bihar is pleased to order that the class of dealers specified in the second column of the schedule hereto annexed shall be exempt from the payment of sales tax on the sale of goods specified in the third column of the said schedule subject to the restrictions and conditions set out in the corresponding entry in the fourth column of the said schedule. --------------------------------------------------------------------- S. Class of dealer. Description of the Restrictions and No. goods. conditions subject to which exemption has been allowed. --------------------------------------------------------------------- 1 2 3 4 --------------------------------------------------------------------- 1. Dealers selling Cotton fabrics, rayon Provided the registered cotton fabrics or or artificial silk fab- dealers in the said artificial silk rics, woollen fabrics. goods pay to the State fabrics, woollen sugar and tobacco as Government such amount fabrics, sugar and defined in Additional by such date as is tobacco as defined Duties of Excise (Levy determined by the in the Additional & Distribution) Bill, latter as taxpayable Duties of Excise 1957, read with the on the sale of such (Levy & Distribu- Provisional Collection stock of the said tion) Bill, 1957. of Taxes Act, 1931 goods, held by or for read with the (XVI of 1931) and such dealers, as has Provisional handloom cloth, exclu- not borne the incidence Collection ding pure silk cloth. either of the Bihar of Taxes Act, Sales Tax or of Addit- 1931 (XVI of ional Duties of Excise 1931) and handloom as under Additional cloth excluding Duties of Excise (Levy pure silk cloth. & Distribution) Bill, 1957, read with the Provisional Collection of Taxes Act, 1931 (XVI of 1931) and provided further that for the purpose of such determ- ination the dealers furnish to the Superin- tendent of Sales Tax, within a fortnight of the date of this noti- fication, a correct and complete return, supported by an affidavit in respect of such stock.
(3.)It was contended on behalf of the petitioners that the expression "tobacco", as defined in the Additional Duties of Excise (Levy & Distribution) Act, 1957, includes all kinds of tobacco manufactured or not and so the petitioners were exempt from being taxed on handmade bins by virtue of this notification. In our opinion, the argument of learned counsel is well-founded and must prevail. The notification of the Government of Bihar, dated the 14th December, 1957, exempts dealers from the payment of sales tax on tobacco as defined in the Additional Duties of Excise (Levy & Distribution) Bill, 1957, read with the Provisional Collection of Taxes Act, 1931 (XVI of 1931)'. Turning to the Additional Duties of Excise (Levy & Distribution) Bill, 1957, we find that Clause 2(c) of the Bill reads as follows :- 2. In this Act,- * * * * (c) the words and expressions 'sugar', 'tobacco', 'cotton fabrics', 'rayon or artificial silk fabrics' and 'woollen fabrics' shall have the meanings respectively assigned to them in items Nos. 8, 9, 12, 12A and 12B of the First Schedule to the Central Excise and Salt Act, 1944.


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