SCA/3689/2002 1/15 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 3689 of 2002 For Approval and Signature: HONOURABLE MR.JUSTICE JAYANT PATEL ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= NAVNEET PUBLICATIONS (INDIA) LIMITED & 1 - Petitioner(s) Versus MUNICIPAL CORPORATION - Respondent(s) ========================================================= Appearance : MR AMAR N BHATT for Petitioner(s) : 1 - 2. MR MG NAGARKAR for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE JAYANT PATEL Date : 14, 17, 20/11/2008 ORAL JUDGMENT 1. The short facts of the case appear to be that the petitioner is in the business of publishing SCA/3689/2002 2/15 JUDGMENT books, including note books (exercise books and drawing books). As per the petitioner, it was paying 2% octroi, though it was not payable, whereas the case of the respondent Corporation is that the octroi payable was 2%. The petitioner made representation to the respondent Corporation in the year 2001 to refund the amount of octroi already collected on the ground that the material of blank, lined-note books, etc., over which the octroi collected be refunded since there is no liability to pay octroi. No action was taken and under these circumstances, the present petition. 2. Heard Mr.Suparkar, learned Counsel appearing with Mr.Bhatt, learned Counsel for the petitioner and Mr.Nagarkar, learned Counsel for the respondent Corporation. 3. It appears that the three entries as well as the exemption clause deserve to be considered for examining the controversy between the parties. General Exemption provides for various items and the relevant of which is clause No.41, which reads in English as under:- SCA/3689/2002 3/15 JUDGMENT “(41) All kinds of printed matter including books, literatures, magazines, periodicals, examination answer and question papers.” 4. For the purpose of charging octroi, Schedule has been provided and entry No.49, 49(A) and 49/1 are relevant, which read as under:- Sr. No. Item No. Name and description of the article Rate (Rs. p.) Per 164 49 Stationery papers of all sorts including newsprints. 1.00 Pc. Adv. 165 49A Ink not otherwise specified elsewhere in the schedule, fountain pens, ball- pointpens, pencils, holders, paper- weights, calling bells, not electrically operated, blotlers, carbon papers, drawing requisites, slates and stencils and stitching machines and punching machines and its accessories. 2.00 Pc. Adv. SCA/3689/2002 4/15 JUDGMENT Sr. No. Item No. Name and description of the article Rate (Rs. p.) Per 166 49/1 Diaries, invitation and greeting cards, photographic album, calendars with datta/dates and draft papers, printing ink, paper printing colours including literature or brouchures imported for business propaganda and printed stationery. 2.00 Pc. Adv. 5. If the Entry No.41 for exemption clause is considered, it appears that it includes all kinds of printed matters and such printed matters are identified as books, literatures, magazines, periodicals, examination answer and question papers. The literal meaning of such entry appears to be that the books, literatures, magazines, periodicals and examination answer and question papers have to be of printed matters and if they are printed matters, then such would stand excluded and would fall in the category of exemption clause. 6. It is an admitted position that the items, which are being imported by the petitioner is blank, SCA/3689/2002 5/15 JUDGMENT lined-note books. Therefore, as it is, it would not fall in the category of printed matters, since they are blank note books and not printed note books. 7. The attempt was made by the learned Counsel for the petitioner to contend that since in the entry the language is 'including books', all books would stand included in the exemption clause, irrespective of the fact as to whether the same is printed books or a blank book. He submitted that note books can also be termed as books and, therefore, it would fall in the category of exemption clause. It was submitted by the learned Counsel for the petitioner that when the definition is inclusive and in the entry, the language is 'books', books of all categories would fall for the purpose of exemption and it does not matter as to whether it is printed or blank note book. He submitted that if somebody is desirous to go in the market for buying blank note book, he might say a blank note book or book and, therefore, if the meaning known of the word 'book' as is available in the SCA/3689/2002 6/15 JUDGMENT common parlance is considered, then also the blank note book and blank drawing journal would fall in the category of 'book' and, therefore, exempted from charging of octroi and no octroi whatsoever would be liable. 8. It is hardly deserves to be recorded that a meaning cannot be read, may be for exemption or for charging of octroi, in absolute sense, but for interpreting any entry in a taxing statute, it has to be read, keeping in view the other related entry also. If the intention was to keep all the blank books, which are to be used for stationery purpose or for writings, outside the chargeability of the octroi, there would not have been other entry for charging of octroi. It appears that under Entry No.49, stationery papers of all sorts, including newsprints stationeries are included. Such shows that a blank stationery, over which the printing is to be made or the writing, could be made is to be charged under Entry No.49. So far as the other stationeries than that comprising of paper, it may fall in the category of Entry No.49A. Entry SCA/3689/2002 7/15 JUDGMENT No.49A speaks for stationeries other than comprising of papers. The same is apparent from the language employed namely; that it includes ink, fountain pens, ball-pointpens, pencils, holders, paper-weights, calling bells not electrically operated, blotlers, carbon papers, drawing requisites, slates and stencils and stitching machines and punching machines and its accessories. Therefore, stationeries and papers of all sorts are included in the Entry No.49. All such relate to blank stationeries, may be in its loose form or in its bound form, but it can be termed as stationery. If exemption clause is considered in light of Entry No.49/1, it appears that for diaries, invitation and greeting cards, photographic album, calenders with datta/dates and draft papers, printing ink, paper printing colours including literature or brochures imported for business propaganda and printed stationery are included in such entry. Therefore, if the printed stationery is by way of literature or brochure imported for business propaganda, it may fall under Entry No.49/1. SCA/3689/2002 8/15 JUDGMENT 9. In light of the above, if the exemption clause of Item No.41 is considered, it is apparent that all printed matters, which may include printed books, printed literatures, printed magazines, printed periodicals, printed examination answer and question papers, would fall in the category of Clause 41 of the exemption. 10.It is not the case of the petitioner that note books, may be lined or blank (unlined), are printed note books, but the attempt on the part of the petitioner is to contend that all books, whether printed or blank would fall in the category of exemption clause, since the independent meaning is to be given, cannot be countenanced. It appears that if such is read, it may result into making the other entries redundant and not only that, but the same does not appear to be the intention of the Rule Making Authority while including certain items in the exemption clause. If all books were to be included, there would not have been any entry for charging of octroi or inclusion of stationery papers or inclusion of printed SCA/3689/2002 9/15 JUDGMENT stationeries under Entry No.49/1, which are imported for business propaganda by way of literature or brochures. Therefore, if the independent meaning, as sought to be canvassed of the word “book” is given, it would frustrate the very object of exemption clause and may result into traveling beyond the exemption provided under Clause 41. 11.The learned Counsel for the petitioner, had relied upon the decision of the Apex Court in case of The Commissioner of Income Tax, Andhra Pardesh v. Taj Mahal Hotel, Secunderabad, reported in AIR 1972 SC, 168 and the decision in the case of The South Gujarat Roofing Tiles Manufacturers Association and Anr. v. State of Gujarat, reported in AIR 1977 SC, 90 for contending that if a separate word is included by express language, it may expand the meaning and is also to be independently considered. It was, therefore, submitted that as the books are included in the exemption clause, it would include all books, whether printed or blank note books. SCA/3689/2002 10/15 JUDGMENT 12.Even if such principle is considered that the books are included, it cannot be read independently on the ground as sought to be canvassed. The 'book' is connotation used for inclusion in context to the printed matters. It is not the case of the petitioner that the books, which are being imported are printed books. Therefore, even if the word 'books' is included, it would not mean to include blank books, but would mean to include printed books. Therefore, the said decision is of no help to the petitioner. 13.The attempt was also made on the part of the petitioner for contending that the books would include blank note books, including spiral note books by relying upon the decision of the Apex Court in case of Central Bureau of Investigation v. V.C. Shukla & Ors., reported in 1998(3) SCC, 410. As observed earlier, the word 'book' is to be read in context to the language used in the exemption clause. It is not in dispute that blank book can also be termed as book, but as per exemption clause, as observed earlier, SCA/3689/2002 11/15 JUDGMENT printed books are exempted. Therefore, the said decision even if considered would not carry the case of the petitioner further for treating the inclusion of blank note book in the category of exemption clause. 14.In view of the aforesaid, the contention of the petitioner that the note books, which are to be used for stationery would fall in the category of exemption clause cannot be accepted. 15.As per the respondent, the octroi leviable on such blank note books, which are being imported, is under Entry No.49A, whereas the case of the petitioner is that neither it fall under Entry No.49A, nor under Entry No.49/1 or under Entry No.49 and there is no residuary clause for charging octroi. Therefore, no octroi will be leviable. 16.Entry No.55 reads as under:- SCA/3689/2002 12/15 JUDGMENT Sr. No. Item No. Name and description of the article Rate (Rs. p.) Per 181 55 All articles and goods not specified elsewhere. Rs.2.00 Pc. Adv. 17.The aforesaid entry is inserted for the period prior to 26.4.2002 the rate was Re.1/- per Adv., which has been revised after 26.4.2002 as Rs.2/- per Pc. Adv. Therefore, the contention of the learned Counsel for the petitioner is not right on factual premise that there is no residuary clause. 18.Under these circumstances, the residuary clause as is in existence, the contention cannot be accepted that no octroi is chargeable in absence of any residuary clause. 19.It appears that Entry Nos.49, 49A and 49/1 are specifically meant for the purpose of charging octroi for stationeries and other material concerning to the stationeries, stationery papers of all sorts, etc., are included in Entry No.49. Therefore, such entry is wide enough to cover all blank stationeries or such SCA/3689/2002 13/15 JUDGMENT stationeries, which can be used for stationery purpose. Such would include blank stationery papers or other papers, which can be used for printing of newsprints. Therefore, Entry No.49 provides for charging of octroi on all blank stationeries. Since the words used are 'all sorts', it would include all types of blank papers, may be lined or unlined in its loose or bound form but to be used for writing, would fall in the category of Entry No.49 and not under Entry No.49A on the ground as sought to be canvassed on behalf of the respondent Corporation. Entry No.49A refers to all items, which are other than that of paper and, therefore, Entry No.49A cannot be made applicable. Entry No.49/1 refers to a particular type of stationery and a particular printed stationery comprising of literatures, brochures imported for business propaganda. The items, which are subject matter of the petition would not fall within that category of Entry No.49/1. The blank note books, may be lined or unlined, for all purpose would fall in the SCA/3689/2002 14/15 JUDGMENT category of stationery of all sorts, comprising of papers and, therefore, would fall in the category of Entry No.49. 20.In view of the above, it is hereby observed and directed that the items, which are subject matter of the petition namely; note books (exercise books and drawing books), imported by the petitioner are chargeable for octroi under head of Entry No.49 as per the rates prevailing from time to time and the respondent consequently would not be entitled to charge octroi on any other heads of the schedule of the octroi. It is observed that as a consequence of the aforesaid, the respondent Corporation shall be required to give effect by crediting the amount already recovered and consequential order shall be passed, may be for refund or recovery of the amount, if any, in accordance with law, within a period of two months from the date of receipt of the order. 21.The petition is partly allowed to the aforesaid extent. Rule made absolute accordingly. No order as to costs. SCA/3689/2002 15/15 JUDGMENT 20.11.2008 (Jayant Patel, J.) vinod