vil Appeal Nos
2665 72 NT of 1981 etc
From the Judgment and Order dated 911980 of the Madras High Court in Tax Case Nos 894 895 of 1977 591 942968 975 of 1979 and WP Nos 4951 and 4952 of 1978
section Padmanabhan R Mohan and RA Perumal for the Appel lant
TA Ramachandran AK Sen Mrs J Ramachandran Inbarajan PN Ramalingam ATM Sampath and AVV Nair for the Respondents
The Judgment of the Court was delivered by RANGANATHAN J
All these civil appeals and special leave petitions raise a common question as to the interpre tation of an expression used in the 
Some of these matters arise out of judgments of the High Court in Tax Revision cases and some out of judgments in writ petitions but the point involved is the same
1n view of the pendency of the appeals we grant leave in the spe cial leave petitions after condoning the delay in filing some of them and proceed to dispose of all the appeals by a common order
The respondents are all dealers in hides and skins carrying on business in the State of Tamil Nadu
As is well known raw hides and skins undergo various processes such as cutting tanning dyeing dressing and finishing before they get converted into finished leather and assume a condition fit for the manufacture of various kinds of leather arti cles
The dispute in these appeals is in regard to two items of goods that are sold by these assessees viz leather splits and coloured leather
The splits are the cut pieces often small and irregular obtained in the process of cut ting raw of tanned hides and skins either with a view to reduce their thickness or with a view to give them a regular shape
Coloured leather is obtained when the tanned hides and skins are dyed with various colours
The assessee inter alia deal in these two items their manner of such dealing varying from case to case
Some of them obtain the leather splits in the process of cutting and sell them while 449 some purchase the cuttings and sell them as such
So also the coloured leather is obtained by some of the assessees in the process of finishing and they sell them while others purchase the coloured leather and sell them as such
The assessees  claim is that these two items fall in the list of goods of special importance in inter State trade and com merce set out in section 14 of the the CST Act  and that therefore the assessee is enti tled in respect of their sales to the concessions avail able under section 15 of the CST Act viz the benefits of single point taxation and of a smaller rate of tax
The sole ques tion in these appeals is whether the High Court was right in upholding this claim
The principal judgment of the High Court on this point has been reported as Mahi Traders vs State of Tamil Nadu 1980 45 STC 327
The relevant entry in section 14 of the CST Act reads 141iii hides and skins whether in a raw or dressed state
 The short case of the department is a that leather splits or cuttings are scrap and do not qualify any longer to be described as hides and skins and b that coloured leather is a totally new and sophisticated product known as leather and can no longer be described merely as hides and skins
The department s case is best explained in a passage from the order of the Board of Revenue which accepted the depart ment s contention
It observed The contentions have been examined with reference to the connected records
The splits are only pieces of leather obtained in the process of getting leather of uniform thick ness from dressed skins
Such splits cannot be treated as dressed hides and declared goods
The expression raw or dressed skin in sec tion 14 of the has a distinct connotation and it cannot be extended to leather bits obtained in a process
These splits are of much lesser value and cannot be equated to dressed skins
In 27 STC page 385 the Orissa High Court has held that if steel plates are cut to sizes they cease to be the original product
What should be con sidered is whether those leather splits are commercially understood as dressed hides and skins
If they are understood only as just skins as claimed there is no need to call them as splits in commercial parlance
The Courts have repeatedly ruled that the entries in the Act 450 should be treated only as understood by the Trade
These splits were produced before the Board at the time of hearing
They were found to be thin pieces which can be utilised only for miscellaneous purposes
The contention that these leather splits continue to be dressed skins and are declared goods of inter state importance is untenable
The assessing officer was therefore right in treating these splits as scraps and taxing them at the multi point rate and in the absence of C  forms at 10
As regards the coloured skins once the dressed skins bought are split and the upper layer of uniform size is coloured or dyed such coloured skins become different products
They are finished leather sold as coloured skins and not as dressed skins
They are commercially different and are treated and dealt with in trade circles as different products
The process of dyeing or colouring changes the commercial nature of the dressed skins
There are different patterns of dyeing and colouring
The complete piece may be dyed or coloured uniformly with a single colour or with a pattern of colours depending upon the requirements of the prospective consumers in the market
As the dressed skins are subjected to process first by splitting and secondly by colouring they become different products
Pieces of coloured and dyed leather were produced before the Board at the time of hearing
Some pieces were coloured With a single colour on one side and dyed on the reverse
They can be used straightaway for manufacturing leather goods
They were also in patterns
The contention that no change is involved has therefore no force
Both the Appellate Assistant Commissioner and the Assessing Officer were not therefore correct in allowing exemption
 On the other hand on behalf of the assessees refer ence is made to certain circulars of the authorities which contain a contemporaneous exposition of the meaning of the entry in question reliance is placed on the decision of the Sales Tax Appellate Tribunal to the contrary and it is emphasised that to say that the one item is called scraps and the other is called leather is not sufficient to take them out of the description hides and skins in a raw or dressed state
It is submitted that cuttings of hides and skins do not cease to be hides and skins merely because they are small pieces and can be loosely described as scraps
So far as coloured leather is concerned according 451 to the assessee the question is not whether the coloured skin is described as leather or whether it is a new product different from hides and skins as understood generally but what exactly is the scope of the expression used in entry iii of section 141
The submission is that hides and skins are generally described as leather even as soon as tanning is done but the entry in the statute goes much beyond this stage
It takes in all categories of hides and skins right from their raw condition through various stages of their tanning and other processing right upto the stage when they receive the final finishing touches
We have heard learned counsel on both sides at length and come to the conclusion that the assessees are entitled to the benefit of Ss 14 and 15 of the CST Act in respect of the two items in question
As far as the first item is concerned it is common ground that leather splits are nothing but cut pieces of hides and skins
We fail to see how they cease to be hides and skins
It is no doubt true that they are cheaper and have a separate name but the name only indicates that they are cut pieces
It is not because they have ceased to be hides and skins and constitute a different commercial commodity that they are called scraps 
Some of the dealers purchase and sell such splits and such turnover is considerable
There is no material to suggest that they are useless or worthless articles
A loose description of them as scrap  cannot deprive them of the benefit of section 14 of the Act
Turning to coloured leather we may at the outset refer to a very important circumstances referred to by the respondents
When the CST Act came into force on 141957 a question was raised regarding the meaning of the expression hides and skins in dressed state  used in section 14
The matter was referred to the leather development wing of the Ministry of Commerce and Industry which gave the following opinion Hides and Skins are obtained from either slaughtered or dead animals
The raw hides and skins thus obtained are known to be in the Green State
These are easily putrescible if proper precautions are not taken they would easily rot and decay
Since tanneries are not always located very near the source of raw hides and skins the question of preserving them for a temporary period till they reach a tanning centre assumes importance
Raw hides and skins are cured  by either wet salting dry salting or drying
In the cured state  the raw materials can be preserved for a temporary period
In the third state of tempo rary preserva 452 tion the hides and skins are picked 
During the next stage they are tanned in which state they can be preserved almost indefinitely
These tanned hides and skins are processed further to yield Dressed Hides and Skins which are ready for use Dressed  or finished material could also be preserved almost indef initely
From the above it will be seen that the expression Hides and Skins in the raw or dressed State  refers at one end to the raw material obtained from the slaughtered or dead animals and at the other end to the tanned and finished material the expression therefore seems to include the other intermediate stages indicated in the previous paragraphs
Dress ing according to the authoritative interpre tations would mean the conversion of tanned hides and skins by further suitable processing into leathers of different types which are ready for use vide SBT 
1849514 of November 11 1957
It would seem though this is not quite clear from the record that this opinion held the field for quite some time until the assessments presently in question were made
Even here as pointed out by the High Court the departmental view was not quite consistent
The Deputy Commercial Tax Officer in some of the cases was willing to concede that coloured leather notwithstanding the colouring continued to be dressed hides and skins but thought that leather splits should be brought to multipoint tax
The Assistant Commissioner on the contrary took the view that splits would continue to be hides and skins
It was the Board of Revenue that decided that both items would fall outside the purview of item iii in section 141
It has been pointed out by this court in Desh Bandhu Gupta and Ors
vs Delhi Stock Exchange   and Varghese vs ITO that a contemporane ous exposition by the administrative authorities is a very useful and relevant guide to the interpretation of the expressions  used in a statute
Considering that the above clarification was sought for at the earliest point of time when a doubt arose as to the scope of the expression used by the statute and given after considering the technicalities of the processes employed in the manufacture of finished leather by the department fully conversant with this branch of trade and in the context of the provisions of this very statute the terms of the statute can well be construed by reference to such exposition in the absence of anything in the statute 453 to indicate the contrary
Indeed such interpretation should be shown to be clearly wrong before it is overturned
 Can it then be said that the view expressed above is clearly wrong We think not on the contrary it is seen to be quite correct
The statutory expression refers to hides and skins in a dressed state
The guidelines issued for identification of finished  leather for exports by the Indian Standards Institution ISI refer to as many as 19 operations or processes undergone during manufacture of finished leather  but dressing  is not one of them
A glossary of terms relating to hides skins and leather published by the ISI in 1960 contains the following definitions CRUSTS Crust Leather Tanned hides and skins without any finish
CURRYING A series of dressing and finishing processes applied to leather after tanning in the course of which appropriate amounts of oils and greases are incorporated in the leather to give it increased tensile strength flexibility and resisting properties
DRESSED RIDES Tanned hides curried or other wise finished for various purposes such as belting harness and saddlery travel goods and for upholstery
DRESSING LEATHER Vegetable tanned hides which may be dressed to suit the purpose for which they are to be used such as for harness saddlery and other mechanical purposes
LEATHER The skin or hide of animals prepared by tanning which still retains its original fibrous structure more or less intact but from which hair or wool may or may not have been removed and which has been treated so as to be imputrescible even after treatment with water
The earlier glossary of such terms published by the British Standards Institution defines dressing  as a general term for the series of processes employed to con vert certain rough tanned hides and skins andor crust leather into leather ready for use
 Also Leather is defined as a general term for hide or skin which still retains its original fibrous structure more or less intact and which has 454 been treated so as to be imputrescible even after treatment with water
 The hair or wool may or may not have been removed
Certain skins similarly treated or dressed and without the hair removed are termed fur 
The Dictionary of Leather Terminology published by the Tanners  Council of America describes leather as the hide and skin of any animal or any portion of such skin when tanned tawed or otherwise dressed for use
 The above definitions show that hides and skins acquire the name of leather  even if the hair or wool has not been removed therefrom as soon as they receive some treatment which prevents them from putrefaction after treatment with water
Dressing is a stage much later than tanning
Indeed from the definitions quoted above it will be seen that it is practically the same as giving finishing touches to the leather and making it suitable for the manufacture of par ticular types of goods
Sri Sen invited our attention apart from the contempo raneous exposition by the Department to the findings of the Tribunal in this regard in an earlier case which had not been appealed against by the Department
The Tribunal had said We have carefully considered the records as well as the arguments
We have seen the speci mens of the articles sold
Bits of the same are also on record
We have carefully scruti nised the same
We are unable to say that what the appellants had sold is not leather or in other words dressed hides and skins
The fact that the appellant has done some more finish ing would not take away the resultant product from the classification
We do find that the clarification issued by the Board of Revenue Madras and the Govt
of India supports the appellants case
The expert opinion which only says that the resultant product has undergone some chemical changes observed as under It is surely a different product because it is a finished leather
It however retains the leathery properties of the dressed leather
Hence the expert opinion also fully supports the appellants case inasmuch as it concedes that the resultant product is finished leath er 
It is because the issue in appellant s case is not whether the appellant was selling a different product 455 from the one it purchased but whether the appellant was selling tanned leather
In this case we do not find any factual basis even to cast any doubt upon the appellant s claim
It is a pity that the assessing authority should have followed the audit objections without the application of his own mind
Leather from the stage of raw skins to the stage of dressed hides and skins may undergo various stages of changes
Under the classification for the purposes of section 14 of the  the various stages are irrelevant
For the purposes of Tamil Nadu General Sales Tax Act 1959 only two stages that are rele vant are the skins at the raw stage and the skins in the form of dressed hides and skins or tanned hides and skins
The appellant purchases semifinished leather and undertakes further process of finishing with a view to colour the hides and skins for certain uses of skins
He says that he purchased the same tanned hides and skins and sold the tanned hides and skins
According to him the products purchased and sold are not different even under the classification by way of the dichot omy between raw and dressed hides and skins under the Tamil Nadu General Sales Tax Act
Under the  the appellant is in a much better position because all the hides and skins are brought together in one entry
Whether raw or dressed the product falls under the same entry
 We are of opinion that this represents the correct view of the scope of the entry in question
The same conclusion is further borne but by the litera ture referred to before us by Sri Ramachandran
7 of the Encyclopedia Brittanica under the word dress ex plains that the verb has various applications which can be deduced from its original meaning and that it is thus used not only of the putting on of the clothing but of the pre paring and finishing of leather   Vol 17 under the head leather details the various processes applied in the treatment of hides and skins at all stages pre tanning tanning and post tanning
Dyeing or colouring is a process which follows tanning but precedes finishing ie dress ing in order to make it suitable for the purpose for which it is required in commercial usage
of the Wealth of India a publication of the Council of Scientific and Industrial Research 1966 dealing with leather under Industrial Products explains that hides and skins are liable to putrefaction and loss unless 456 suitably treated and converted into leather
 Structurally hides and skins have a thick middle layer called corium which is converted to leather by tanning
The operations involved in leather manufacture however fall into three groups
Pre tanning operations include soaking liming deliming bating and pickling and post tanning operations are splitting and shaving neutralising bleaching dyeing fat liquoring and stuffing setting out samming drying staking and finishing
These operations bring about chemical changes in the leather substance and influence the physical characteristics of the leather and different varieties of commercial leather are obtained by suitably adjusting the manufacturing operations
These processes need not be gone into in detail but the passages relied upon clearly show that hides and skins are termed leather  even as soon as the process of tanning is over and the danger of their putrefaction is put an end to
The entry in the CST Act however includes within its scope hides and skins until they are dressed 
This as we have seen represents the stage when they undergo the process of finishing and assume a form in which they can be readily utilised for manufacture of various commercial articles
In this view it is hardly material that coloured leather may be a form of leather or may even be said to represent a different commercial commod ity
The statutory entry is comprehensive enough to include the products emerging from hides and skins until the process of dressing or finishing is done
We are therefore of the view that the High Court was right in holding that splits  and coloured leather  con tinue to be hides and skins eligible for special treatment under the CST Act
All the appeals therefore fail and are dismissed
We however make no order as to costs
GN Appeals dis missed


Summary:
The assessee respondent in the appeals was engaged in the repairing and refilling of cotton bowls on the shafts which are used as part of calendering machine in the textile industry
The cotton bowl is a shaft made of steel on which a thick layer of cotton is pasted and affixed
It is used in the textile finishing industries as an essential part of the calendering machine
In the course of its use the cotton pasted on the shaft loses its thickness and shape and after sometime it requires repairing and refilling
The assessee moved an application under section 35 of the UP Sales Tax Act 1948 and the decision inter alia included the question whether the job of repairing and refilling of cotton bowl and the process involved therein amounted to manufacture or sale within the meaning of the Act
The Commissioner of Sales Tax decided both these ques tions against the assessee and the assessee preferred an appeal before the 422 Sales Tax Tribunal
The Tribunal allowed the appeal in part
It held that the process of repairing and refilling of cotton bowl of the customers did not amount to manufacture as defined under section 2e i of the Act
It further held that such an activity of the assessee amounted to sale as defined under section 2h of the Act as amended by the UP Sales Tax Amendment and Validation Act 1985
TheCommissioner of Sales Tax preferred a revision to the High Court which went into the question whether a fur ther revision lay to the High Court
It came to the conclu sion having regard to the scheme of the provisions contained in section 35 and the amendment made by the UP Act 12 of 1979 and the earlier Division Bench decision of the High Court in Indo Lube Refineries vs Sales Tax Officer 1987 66 STC 145 All that no further revision lay to the High Court from the order of the Tribunal
The High Court accord ingly dismissed the revision
The Commissioner appealed by special leave to this Court
On the question whether a revision shall lie to the High Court from the decision of the Commissioner under section 35 of the UP Sales Tax Act which has been the subject matter of an appeal before the Tribunal
Dismissing the Appeals the Court HELD 1
The very language of section 35 of the UP Sales Tax Act 1948 which enjoins a decision by the Commis sioner envisages that the decision is quasi judicial or judicial and cannot be characterised as administrative
The question is whether on the language of the section a revi sion is entertainable from the decision of the Commissioner which has been subjected to an appeal to the Tribunal
In view of the language used specifically in the absence of a provision that such a revision will be maintainable such revision will not be
435C E 2
Sub section 5 of section 35 after the amendment states that the decision of the Commissioner of Sales Tax under this section shall subject to an appeal to the Tribu nal be final
In view of the language of that section it cannot contemplate a further revision to the High Court against a decision of the Tribunal
435E F Indo Lube Refineries vs Sales Tax Officer Sector l
Gorakhpur 1987 66 STC 145 approved
423 3
In the instant case the right of appeal has been given under the Act not to any ordinary Court of the country under the Code of Civil Procedure but to the courts enumer ated under the Sales Tax Act and the revision is contem plated under the provisions of the Sales Tax Act
436B 4
Final in section 35 means that it is final and under the Act subject to the limited procedure contemplated under the Act
The expression final  prima facie means that an order passed under the Act was conclusive and no further appeal lay
A right to revision under the Act is a right given by the Act
436C D Kydd vs Vatch Committee of City of Liverpool  331 32 Maung Ba Thaw vs Ma Pin 1933 34 61 LR Indian Appeals 158 South Asia Industries Pvt Ltd vs SB Sarup Singh and Ms Jetha Bai and Sons Jew and others vs Ms Sunderdas Ratheni and others   referred to
Revision to the High Court in special cases under section 11 is contemplated on the ground that the case involved a question of law
437B 6
Having regard to the scheme of the UP Sales Tax Act 1948 manifested from the amendment to make the Commis sioner s decision final subject to an appeal to the Tribu nal where the Tribunal is enjoined to hear such as appeal by a Bench of three members and where revision is provided only in special cases it would be improper to interpret the spirit and reason of that law in such a way as to enjoin that a further revision lay to the High Court under section 11 of the Act
The High Court was therefore right that no further revision in such a situation would lie to the High Court
437F G 7
This however does not eliminate correction by the High Court
In an appropriate case by exercise of a writ of certioraris under Article 226 of the Constitution it exer cises superintendence over all Courts and Tribunals through out the territory
437G H Re Gilmore s Application 1957 1 All England Reports 796 referred to
The intention of the legislature is a slippery phrase
It is better to find out the intention of the legis lature from the words used by the natural meaning of the words and the spirit and reason of the law
437E 424 Aron Salomon vs A Salomon and Company Ltd  38 Lord Howard De Walden vs Inland Revenue Commis sioners1948 2 All England Reports page 825
referred to
Cross Statutory Interpretation Second Edn p 21
referred to