Judgment

BHAGWATI

( 1 ) THIS appeal by special leave raises a short but interesting question of construction of Section 8 (3) (b) of the Central Sales Tax Act, 1956. The determination of this question has given rise to divergence of opinion amongst different High Courts but if we have regard to the well recognised canons of construction of taxing statutes and also focus our attention on the object and intendment of the section, we do not think it presents much difficulty of solution. The facts giving rise to the appeal are few and may be briefly stated as follows.

( 2 ) THE assessee is a limited company registered under the Companies Act, 1956 and having its registered office at Calcutta. The assessee owns a factory in Faridabad, where it carries on business of manufacturing and processing textiles. The assessee is registered under the Punjab General Sales Tax Act, 1948 as in force in the State of Haryana and at all material times it also held a certificate of Registration under Section 7 of the Central Sales Tax Act, 1956 (hereinafter referred to as the Central Act ). The business mentioned in the Certificate of Registration was "textile manufacturing, sale, purchase, whole-sale dis