R. S. KEJRIWAL, J. - (1.) VIDE order dated 5th December, 1983, the Board of Revenue, Ajmer, referred the following question for decision by this Court under section 15 (1) of the Rajasthan Sales Tax Act, 1954. " Whether, on the facts and in the circumstances of the case, the Board of Revenue was justified in holding that 'mill board, grey board, pulp board, duplex and triplex board' were covered by the terminology of the expression 'care-board, straw board, hard or soft board including fibre sheets', occurring in column 2 of the entry at serial No. 4 in the State Government Notification No. F. 4 (64) FD/gr. IV/77-56 dated 6th September, 1977 and were, therefore, taxable at the rate of 10 per cent ?"
(2.) AFTER the amendment of the Act in the year 1984, the reference was treated as sales tax revision. The relevant facts of the case are that the petitioner deals in selling "mill board, grey board, pulp board, duplex and triplex board" in Jaipur. He submitted an application under section 12a of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act"), before the Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur, on 7th January, 1981, for determination of the following issue regarding the rate leviable on the boards of aforesaid description : " What should be the correct rate of tax in respect of 'mill board', 'grey board', 'pulp board', 'duplex and triplex board' - whether at 4 per cent or 8 per cent ?" The Additional Commissioner, vide his order dated 23rd April, 1981, held that the aforesaid boards were covered by the entry at serial No. 4 of the Government Notification dated 6th September, 1977. Against this order of the Additional Commissioner, the petitioner filed a revision before the Board of Revenue, Ajmer under section 14 of the Act, which was heard by Division Bench of the Board of Revenue on 28th June, 1982, Shri H. C. Pande, Member of the Board of Revenue, agreed with the order passed by the Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur, while another Member Shri Arun Kumar, disagreed with the order of the Additional Commissioner and held that the aforesaid boards are not covered by entry No. 4 of the Government Notification dated 6th September, 1977. Under these circumstances the matter was referred to third Member, who agreed with the view taken by Shri H. C. Pande. Thus the revision field by the petitioner was dismissed by the Board of Revenue as the majority of the Members of the Board of Revenue decided against the petitioner. Later on, the petitioner submitted an application before the Board of Revenue for referring the question as mentioned above to this Court. That application was allowed by the Board of Revenue, Consequently, the aforesaid question was referred to this Court for decision. The relevant portion of Notification dated 6th September, 1977 reads as under : S. No. 369.- F. 4 (64) FD/gr. IV/77-56 dated 6th September, 1977, as corrected by corrigendum dated 24th September, 1977 (S. No. 370 ). ------------------------------------------------------------------------ S. No. Description of goods Rate of tax ------------------------------------------------------------------------ 4. Plywood, straw board, card-board, hard 10 per cent. or soft board including fibre sheets, batten board, block board, leather board, insulating board, veneered panels and cellular wood panels.------------------------------------------------------------------------ Mr. Kotwani, learned counsel for the petitioner, argued that the use of the goods is immaterial for the purpose of classification of goods for determination of the rate of tax payable thereon. He argued that the words mentioned in the list should be given their literal meaning. He further submits that the words mentioned in the list are partly from "wood family" and partly from "paper family". He submits that the mill board, grey board, pulp board, duplex board and triplex board belong to the paper family and are commercially known as separate commodities. He further submits that these articles are not included in the entry No. 4 of the Notification dated 6th September, 1977 and as such sales tax cannot be charged on these items by enlarging scope of entry No. 4, which is restricted with regard to the items mentioned in entry No. 4. He submits that under these circumstances, at the best, tax can be charged treating them in the residuary list. He further argued that the Board of Revenue erred in deciding the matter on the basis of the purpose for which these goods are used and also on the ground that the other dealers pay tax on these articles at the rate of 10 per cent as mentioned in entry No. 4. He argued that the approach of the Board of Revenue in interpreting entry No. 4 is basically wrong. He further argued that if there is any ambiguity, benefit of the same should be given to the assessee. He lastly argued that a taxing statute sold be strictly construed and an assessee cannot be made liable to tax on the ground that the other dealers of the same commodity pay tax as provided in entry No. 4. Mr. Kotwani placed before me the entries containing the description of various kinds of paper boards in various Schedules of Sales Tax Acts in the States of Andhra Pradesh, Maharashtra, Tamil Nadu, Orissa and Bihar and also abstracts of entries containing description of various kinds of wooden boards in Sales Tax Acts of Andhra Pradesh and Tamil Nadu and also the abstracts of item Nos. 16b and 17, relating to wood articles, paper boards, etc. , from the Central Excise Tariffs of India.
(3.) ON the other hand, Mr. Bafna, counsel for the department, supported the majority view of the Board of Revenue. He argued that mill board, grey board, pulp board, duplex board are species of board (hard or straw) and as such they fall within the ambit of entry No. 4 of the aforesaid Government notification. He further argued that pulp board is a board made from wood pulp. He argued that in trade all the aforesaid items are sold in the name of hard board of straw board and as such they fall in entry No. 4 of Government Notification No. F. 4 (64)FD/gr. IV/77-56 dated 6th September, 1977. He argued that the order of the Board of Revenue is perfectly justified and does not require any interference. After hearing learned counsel for both the parties, I am of the view that while interpreting tax laws, the interpretation should be strictly made and when there is confusion, the interpretation should go in favour of the assessee. In the present case, from reading entry No. 4 of the Notification dated 6th September, 1977, it is clear that the Government has specified certain items, just like pulp board ["pulp board" is not in entry 4 of Notification dated 6th September, 1977] (sic), straw board, card-board, etc. This entry does not include all paper boards or wood boards. In view of this, it cannot be said that all types of paper boards and wood boards are included in entry No. 4 of the Notification dated 6th September, 1977. From the Central Excise Tariffs, it appears that item No. 16-B deals with wood and articles of wood, whereas item No. 17 deals with paper, paper boards and articles thereof. Plywood or hard or soft boards are included in the "wood family" whereas the mill board, straw board, card-board are included in the paper board family. From the sales tax tariffs of Andhra Pradesh, Bihar, Karnataka, Maharashtra, Orissa, Tamil Nadu and Uttar Pradesh, it appears that they mentioned words just like all kinds of papers, including pulp board, duplex board, triplex board, card-board, etc. In entry No. 4 of the Government Notification dated 6th September, 1977, no such words are mentioned meaning thereby that the Government wanted to levy tax only on those items which are specifically mentioned in entry No. 4 and no other items. These items are also commercially well-known. A buyer asking for any of these five items, will not be offered card-board or straw board by a dealer dealing in these goods. In my view the purpose for which the consumer uses these goods is not relevant in interpreting the entry No. 4 of the notification. I am also of the view that if dealers charge tax on the aforesaid articles at 10 per cent, it cannot be said that these items are species of card-board or hard board. These consideration while interpreting a tax law are totally irrelevant. These goods are commercially well-known and are different commodities. Looking to all these circumstances, I am of the view that mill board, grey board, pulp board, duplex board and triplex board do not fall in entry No. 4 of the Government Notification dated 6th September, 1977 and tax cannot be charged on these items treating them as falling under entry No. 4 of the Government notification. Consequently, the revision is allowed, the orders passed by the Board of Revenue, Ajmer and also of the Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur, are get aside and it is held that mil board, pulp board, ["grey board" has inadvertently been missed here] (sic), duplex board and triplex board are not covered with the terminology of the expression card-board, hard board and soft board and other items mentioned in entry No. 4 of the Government Notification dated 6th September, 1977, and, therefore, are not taxable at the rate of 10 per cent. Petition allowed. . ;