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1991 Supreme(Bom) 113
IN THE HIGH COURT OF BOMBAY
S.M. Daud, J.
Godrej Soaps Ltd. another.... Petitioners.
Versus
Municipal Corporation of Gr. Bombay another.... Respondents.
Writ Petition No. 1887 of 1983 with Writ Petition No. 1059 of 1986, decided on 20-2-1991.
Advocates appeared :
G.E. Wahanvaty with Percy Gandhi and R.G. Sheth, for petitioners, in W.P. No. 1887/83 W.P. No. 1059/86.
Mrs. N. Mandhyan, for respondents, in W.P. No. 1887/83.
E.P. Bharucha with Mrs. N. Mandhyan, for respondents, in W.P. No. 1059/86.
The interpretation of Entry 18 of Schedule H of the BMC Act, which deals with substances used in washing clothes, floors and utensils, includes ingredients used in the manufacture of such products, such as AO and AOS.
Headnote:
OCTROI - BOMBAY MUNICIPAL CORPORATION ACT - ENTRY 18, SCHEDULE H - INTERPRETATION - AO AND AOS USED IN THE MANUFACTURE OF DETERGENTS - WHETHER LEVIABLE TO OCTROI - HELD, YES.
Fact of the Case:
The petitioner, a company engaged in the manufacture of detergents, challenged the respondents' (BMC) treating the import of AO and AOS as leviable to octroi under Entry 18 of Schedule H of the Bombay Municipal Corporation Act (BMC Act). The petitioner contended that AO and AOS are not "substances used in washing clothes, floors and utensils" as mentioned in Entry 18 and hence not liable to octroi.
Finding of the Court:
The court held that AO and AOS are used in the manufacture of detergents, but by themselves, they cannot be used as washing substances. The court also held that the context of Entry 18, along with the rule of ejusdem generis, indicates that the last few words of Entry 18 do not envisage finished products, but ingredients usable in the manufacture of such products. These would not exclude AO and AOS.
Issues: 1. Whether AO and AOS used in the manufacture of detergents qualify as "other substances used in washing clothes, floors and utensils" occurring in Entry 18, Schedule H of the BMC Act? 2. Which canon is applicable for the construction of Entry 18?
Ratio Decidendi: 1. The court applied the popular or common sense rule of interpretation, which requires giving the meaning to an undefined word or expression that those in the trade give to it. 2. The court also applied the rule of ejusdem generis, which limits the meaning of general words by the specific words that precede them.
Final Decision: The court held that AO and AOS are leviable to octroi under Entry 18 of Schedule H of the BMC Act. The rule granted in the two petitions was discharged, the interim relief was revoked, and the bank guarantees furnished were made enforceable after six weeks from the date of the judgment.
2. Petitioner No. 1-a Company- is in the business of manufacture of detergents. A raw material used in the said manufacture is AOS and this is created by neutralising and sulphonating the chemical AO. The resultant substance is known as sodium alpha olefin sulphonate. Mixed with organic and inorganic builders, it is used to manufacture detergent products taken recourse to in cleaning operations. Petitioner disputes the respondents' (BMC) treating the import of AO and AOS as leviable to octroi under Entry 18 of Schedule H which reads thus :---
"Potash, ritha, soda, alum, saline substances, shikekai, washing soda, caustic soda, refined salt-petre, phenyl, and substances used in washing clothes, floor and utensils."
This entry course In Class III which is titled "Articles used for fuel, lighting, washing and industrial use."
3. A resolution of the controversy requires answers to two questions. First, what exactly are detergents and the two chemicals, and the second, which is the canon applicable for construction of Entry 18. A detergent broadly speaking is that which cleanses. The Chambers 20th Century Dictionary (New Edition 1983) gives to the word amongst amongst others at page 338, the being of 'solvent or mixture of solvents an certain water-soluble oils'; 'a soapless cleanser'. Mr. Bharucha, representing the BMC has relied upon the Random House Encyclopaedia and a condensed Chemical Dictionary to illuminate the path. From the Encyclopaedia we get the information that soap and detergents (the two terms being broadly synonymous) are cleansing agents. These are required because water by itself is incapable of easily getting rid of dirt and grease. Because of its high surface tension water runs off or stays put without penetration when poured on a greasy area. Therefore, the requirement of a cleansing agent that lowers surface tension which enables the water to penetrate and remove the dirt or grease. Synthetic detergents are mixtures of various ingredients, the chief of which is the cleansing agent or surfactant. The major raw materials for soap manufacture are fat and alkali. The Dictionary aforementioned shows a soap builder to be any material mixed with soap to improve the cleaning properties, modify the alkali content, or confer water-softening characteristics. Turn now to the date furnished by petitioners in the 1983 petition. Ex.G. is an excerpt from a trade bulletin issued - so it appears - by the manufacturers of product Sulfermin 14-16 AOS. The product is an AOS consisting primarily of 14 and 16 carbon chain distributions. It is suitable as an active base for general detergent products. The product is said to be in wide use for manufacture of different types of intermediates in the detergent trade. Safety measures have been prescribed for the handling of the product and the basic ones are use of gloves and chemical safety goggles. Even accidental contact of the product with the eyes is to be counteracted with immediate flushing by copious quantities of water. Ex.H-1 is an affidavit of Dr. Mungekar, a highly qualified Chemist. The affidavit says that AOS is a small part of the composition of detergents. By itself cannot be used a washing substance. Ex.H-2 is the affidavit of P.M. Batlivala, who is in the business of soaps and cosmetics for the last more than 15 years. He repeats the assertion that AOS is a small component of detergents. To the same effect is Ex.H.-3 an affidavit filed by G.H. Thakkar, who is in the business of manufacturing, and trading in chemicals required in the making of soaps and detergents. The above suffices to establish the conclusion that AO and AOS are used in the manufacture of detergents
