The word "paper" in entry 24(2) of Schedule C to the Bombay Sales Tax Act, 1959, includes "mill board."

The judgment of the Court was delivered by

T. D. SUGLA, J. - These two sales tax references are at the instance of the department. The references arise out of the assessee's assessment for the period April 1, 1971 to March 31, 1972 and out of the order passed by the Commissioner of Sales Tax under section 52 of the Bombay Sales Tax Act, 1959, on an application dated April 17, 1974, by the assessee for advance determination of its liability in respect of sale of "mill board" under invoice No. 8 dated April 14, 1974. The appeals eventually came up before the Sales Tax Tribunal. By its impugned separate orders dated September 3, 1980, the Tribunal held that "mill board" was covered by entry No. 24(2) of Schedule C to the Sales Tax Act and the sales thereof were liable to sales tax accordingly.

The reasons given by the Tribunal in support of its conclusion, inter atia, were that though there was some distinction between "paper" and "board" in common parlance, factually "paper" was "thin board" and "board" was "thick paper". Having regard to the language used in the entry, "paper" included "board". There was not much difference between the manufacturing process of various types of boards such as straw board, grey board, mill board. There was a golden thread visible through a number of decisions given by the Commissioner of Sales Tax relied upon by the assessee's counsel which also suggested that the sweep of entry 24 was that it included all types of "paper" and all types of "board". For this purpose the Tribunal derived support from this Court's judgment in the case of Commissioner of Sales Tax v. Sultan Shev Co. [1977] 40 STC 583. The Tribunal lastly observed that had the intention of legislature been to restrict the scope of entry 24(2), the word "and" would have been used after the words "sand paper" and before "different kinds of board".

2. The Tribunal has referred to this Court identical question of law in the two proceedings. The question reads thus :

"Whether, on the facts and circumstances of this case and on a true and proper interpretation of entry 24(2) of Schedule C, was the Tribunal correct in law in holding that 'mill board' is covered by that entry 24 of Schedule C but is not covered by the residuary entry 22 of Schedule E ?"

3. It is noteworthy that entry 24 of Schedule C was modified on and from December 1, 1971, and also on and from October 1, 1972. Therefore, while for the purpose of answering the question for assessment covering the period from April 1, 1971 to March 31, 1972, the entry as it stood during that period will be relevant, for answering the question arising out of proceedings under section 52 of the Sales Tax Act, the entry as it stood on and after October 1, 1972, up to date will be relevant. The entry was sub-divided into sub-entry (1) and sub-entry (2) with effect from October 1, 1972, though there is no material difference between the entry before and after its division. It is for this reason that the Tribunal has perhaps inadvertently referred to entry 24(2) in the question arising out of both proceedings.

4. For the sake of convenience, entry 24 as it stood from time to time and entries 6 and 30 which have bearing on the question are reproduced hereunder :

January 1, 1960 to March 31, 1963

C6 Gunny bags and hessian; jute twine and brown paper and other paper adapted for use in packing goods.

C24 Paper, including newsprint but excluding paper specified in entry 6 in this Schedule.

C30 Strawboards and cardboards.

April 1, 1963 to August 31, 1969

C6 Gunny bags and hessian; jute twine.

C24 Paper of all kinds including strawboards, cardboard and duplex and triplex boards.

C30 Deleted.

September 1, 1969 to November 30, 1971

C24 Paper of all kinds including strawboards, cardboard and duplex and triplex boards (but excluding sand paper).

December 1, 1971 to September 30, 1972.

C24 Paper of all kinds including sand paper, strawboards, card-boards and duplex and triplex boards.

October 1, 1972