The language used in entry no. (ix) is plain and unambiguous and that the items which are mentioned there are “tools, alloy and special steel”. By using the words “of any of the above categories” in entry Nos. (ix) would refer to entries (i) to (viii) and it cannot and does not refer to entry no (xv).
However, entry (xvi) of Clause (iv) would be included in entry (xvi) particularly within the expression now therein any of the aforesaid categories. It is a settled principle of law that the words used in the section, rule or notification should not be rendered redundant and should be given effect to: It is also one of the cardinal principles of interpretation of any statue that some meaning must be given to the words used in the section. Besides, in a taxing Act one has to look merely at what is clearly said and there is no room for any intendment. In a taxing statute nothing is to be read in, nothing is to be implied, one can only look fairly at the language used.
M/s. Bansal Wire Industries Ltd. & ANR Vs. State of U.P. & Ors (Supreme Court)
JUDGMENT
Dr. Mukundakam Sharma, J.
1. Leave granted.
2. The issue that falls for consideration in these appeals is, as to whether the `stainless steel wire’ falls under the category, “tools, alloys and special steels of any of the above categories” enumerated in entry no. (ix) of clause (iv) of Section 14 of the Central Sales Tax Act, 1956 (for short the “Central Act”) and therefore the following question emerges for our consideration:-
“Whether stainless steel wire, a product of the appellant, on a proper reading of Section 14 of the Central Sales Tax Act along with the qualifying words `that is to say’ would fall under the category “tools, alloy and special steels of any of the above categories” enumerated in entry no. (ix) of clause (iv) or under entry no. (xv) of same clause (iv)”
3. In all these appeals identical issues are involved. We therefore, proceed to dispose of all these appeals by this common Judgment and Order. In order to arrive at a finding on the issue raised, it will be necessary to set out certain facts leading to filing of the present appeals.
4. The appellant is a Public Limited Company incorporated under the Indian Companies Act, 1956 and is engaged in the business of manufacture and sales of “stainless steel wires”. An assessment order was passed under Rule 41(8) of the UP Trade Tax Rules for the assessment year 1999-2000 under the UP Trade Tax Act, 1948 (for short “the UP Act”) as well as under the Central Act. As per the said assessment order, the tax on sales of “stainless steel wire” was levied @ 4% and sales covered by Form 3-kh were taxed @ 2%.
5. The respondent, however, thereafter held that the sales of “stainless steel wire” has wrongly been taxed @ 4% treating the same as a “declared commodity” and that in fact “stainless steel wire” is not a declared commodity because it is outside the ambit of “Iron and Steel”, which is a declared commodity under Section 14 of the Central Act.
6. In view of the satisfaction arrived at by the respondent, a proposal was sent to the Additional Commissioner, Grade-I, Trade Tax, Ghaziabad Zone, Ghaziabad requesting him for permission to re-open the case of the appellant for the assessment year 1999-2000.
7. The Additional Commissioner, Grade-I, Trade Tax, Ghaziabad Zone, Ghaziabad issued a notice dated 22.03.2006 directing the appellant to show cause as to why the permission should not be granted to the assessing authority for re-opening of the case under Section 21(2) of the UP Act.
8. Respondent No. 3 on 24.3.2006 issued a notice under Section 10-B of the U.P. Act for revising the assessment order passed for the assessment year 2000-01. The appellant states that similar notices for the assessment years 2001-02 and 2002-03 were also issued to the appellant by Respondent No. 3.
9. The appellant filed its reply dated 27.3.2006 to the notice dated 24.3.2006 and, inter alia, stated that “stainless steel wire” is a declared commodity under clause (iv) of Section 14 of the Central Act, hence in view of Section 15 thereof, no tax can be imposed on the declared commodities in excess of 4%. The appellant had also submitted identical replies to the notices relating to assessment years 2001-02 and 2002-03 respectively.
10. After considering the reply as furnished by the appellant, the Additional Commissioner, Grade-I, Trade Tax, Ghaziabad Zone, Ghaziabad by its order dated 27.03.2006 granted permission to the assessing authority to re-open the case under Section 21(2) of the UP Act for the assessment year 1999-2000.
11. Being aggrieved by the issuance of the aforesaid notice, the appellant herein filed a Writ Petition before the Allahabad High Court, which was registered as Writ Petition No. 770 of 2006, wherein, the respondent filed a counter affidavit. The Allahabad High Court, thereafter heard the counsel appearing for the parties and by its judgment and order dated 21.05.2010 dismissed the Writ Petition holding that the “stainless steel wire” is not covered under the item “tools, alloys and special steel” on entry no. (ix) and, therefore, does not fall under “Iron and Steel” as defined under clause (iv) of Section 14 of the Central Act and therefore the provision of Section 15 of the Central Act does not apply.
12. Being aggrieved by the judgment and order dated 21.05.2010 passed by the Allahabad High Court, the present appeals were filed by the appellants on which we heard the learned counsel appearing for the parties.
13. The learned counsel appearing for the parties during the course of their submissions relied upon various notifications, some of which are required to be extracted at this stage.
14. The first reference that was made was to the notification dated 26.10.1991. The aforesaid notification was issued by respondent No. 1 in exercise of powers under clause (d) of sub-section (1) of section 3-A of the U.P. Act, whereby under Item 7, Sheets and Circles made wholly or principally of stainless steel and all remaining articles (excluding wares and surgical instruments) made wholly or principally of stainless steel were taxable @ 12%. The relevant part of the said notification is extracted herein below:
