Case: State Of Jharkhand  Vs. M/S. La Opala R.G. Ltd

and strict construction of an exemption provision are to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause then it being in nature of exception is to be construed strictly and against the subject but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full play should be given to it and it calls for a wider and liberal construction… 21. This Court in Gammon (I) Ltd. v. Commr. of Customs, (2011) 12 SCC 499 while rejecting the plea of the appellant that the exemption notification should receive a liberal construction to further the object underlying it relied upon the decision of a Three-Judge Bench of this Court in Novopan India Ltd., which stated the aforesaid principle and the object behind adopting literal interpretation in determining eligibility for claiming exemption or exception from tax as follows: 16. …The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee—assuming that the said principle is good and sound—does not apply to the construction of an exception or an exempting provision; they have to be construed strictly. A person invoking an exception or an exemption provision to relieve him of the tax liability must establish clearly that he is covered by the said provision. In case of doubt or ambiguity, benefit of it must go to the State. This is for the reason explained in Mangalore Chemicals and other decisions viz. each such exception/exemption increases the tax burden on other members of the community correspondingly. Once, of course, the provision is found applicable to him, full effect must be given to it. As observed by a Constitution Bench of this Court in Hansraj Gordhandas v. CCE and Customs that such a notification has to be interpreted in the light of the words employed by it and not on any other basis. This was so held in the context of the principle that in a taxing statute, there is no room for any intendment, that regard must be had to the clear meaning of the words and that the matter should be governed wholly by the language of the notification i.e. by the plain terms of the exemption. (emphasis supplied) 22. In CCE v. Mahaan Dairies this Court has observed that: 8. It is settled law that in order to claim benefit of a notification, a party must strictly comply with the terms of the notification. If on wording of the notification the benefit is not available then by stretching the words of the notification or by adding words to the notification benefit cannot be conferred. 23. CCE v. Bhalla Enterprises laid down a proposition that notification has to be construed on the basis of the language used. A similar view has been expressed by a Division Bench of this Court in Tata Iron & Steel Co. Ltd. v. State of Jharkhand, Kartar Rolling Mills v. CCE, Eagle Flask Industries Ltd. v. CCE, Govt. of India v. Indian Tobacco Assn., (2005) 7 SCC 396 , Collector of Customs (Preventive) v. Malwa Industries Ltd., (2009) 12 SCC 735 and CCE v. Rukmani Pakkwell Traders. 24. Having said that, we would now examine whether the notification would at all be applicable to the sale of product in question. 25. In the instant case, the State Government has issued a notification and has used the expression types of glass and not the expression forms of glass. Therefore, what requires to be examined is whether the two terms would be identical in their connotation and import. 26. It is a settled law that in taxing statutes the terms and expressions must be seen in their common and popular parlance and not be attributed their scientific or technical meanings. In common parlance, the two words type and form are not of the same import. According to the Oxford Dictionary, whereas the meaning of the expression types is kind, class, breed, group, family, genus; the meaning of the word form is visible shape or configuration of something or the style, design, and arrangement in an artistic work as distinct from its content. Similarly, Macmillian Dictionary defines type as a group of people or things with similar qualities or features that make them different from other groups and form as the particular way in which something appears or exists or a shape of someone or something. Therefore, types are based on the broad nature of the item intended to be classified and in terms of forms, the distinguishable feature is the particular way in which the items exist. An example could be the item wax. The types of wax would include animal, vegetable, petroleum, mineral or synthetic wax whereas the form of wax could be candles, lubricant wax, sealing wax, etc. 27. Admittedly, glassware is a form of glass and it is contended by the assessee that forms of glass are also covered by the said notification. The term glassware would generally encompass ornaments, objects and articles made from glass. The New Oxford Dictionary, the Merriam-Webster Dictionary and the Macmillian Dictionary refer to the said general meaning while defining it. Glassware would include crockery such as drinking vessels (drinkware) and tableware and general glass items such as vases, pots, etc. Therefore, it cannot be accepted that the expression types of glass could have been intended to refer to or include forms of glass. 28. In the present case, the respondent-dealer is a manufacturer of glassware. In our considered view, the glassware so manufactured by the respondent-dealer though made of glass cannot be considered or called as a type of glass in light of the aforesaid discussion and since the notification only provides for the reduction in the rate of tax of types of glass and not for forms of glass which is manufactured by the respondent as glassware, the respondent would not be covered by the notification. Keeping that aspect in mind,

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]19. We do not concur with the proposition put forth by Shri S.D. Sanjay, learned senior counsel that a notification which grants tax incentives should to be liberally construed in support of his submission. It is settled rule of construction of a notification that at the outset a strict approach ought to be adopted in administering whether a dealer/ manufacturer is covered by it at all and if the dealer/manufacturer falls within the notification, then the provisions of the notification be liberally construed20. Literally speaking, an exemption is freedom from any liability, payment of tax or duty. It may assume different applications in a growing economy such as provisioning for tax holiday to new units, concessional rate of tax to goods or persons for a limited period under specific conditions and therefore, in Union of India v. Wood Papers Ltd., (1990) 4 SCC 256  this Court has observed that construction of an exemption notification or an exemption clause in contrast with the charging provision has to be tested on different touchstone and held that the eligibility clause in relation to an exemption notification is given strict meaning and the notification has to be interpreted in terms of its language, however, once an assessee satisfies the eligibility clause, the exemption clause therein may be construed literally.Therefore, it cannot be accepted that the expression types of glass could have been intended to refer to or include forms of glass28. In the present case, the respondent-dealer is a manufacturer of glassware. In our considered view, the glassware so manufactured by the respondent-dealer though made of glass cannot be considered or called as a type of glass in light of the aforesaid discussion and since the notification only provides for the reduction in the rate of tax of types of glass and not for forms of glass which is manufactured by the respondent as glassware, the respondent would not be covered by the notification.