Case: Commnr., Sales Tax, U.P Vs. S/S. Bharat Bone Mill

of words used in different statutes. It is firmly settled that the interpretation or definition clause occurring in a statute can be used only for the purpose of interpreting words appearing in that statute and not for the purpose of interpreting words appearing in other statutes. To take a word bearing a peculiar meaning in a particular Act and to clothe that word with the same meaning when found in different context in a different Act is a fallacious process of interpretation. The Tribunal was, therefore, not justified in pressing into service the definition of "fertilizer" given in the Fertilizer (Control) Order, 1957-a statutory provision, the scope and object of which is altogether different from the Sales Tax Act. The Tribunal was, therefore, in error in remanding the matter to the Sales Tax Officer for a fresh decision after determining whether the produce manufactured by the assessee was or was not a "fertilizer" according to the definition of that term given in the Fertilizer (Control) Order, 1957." 8. The said view was approved by a Full Bench of the said Court in The Ratlam Bone & Fertilizer Co. vs. The State of Madhya Pradesh and Another [35 STC 132] . 9. In Yasin Bone Mills vs. State of U.P. and Another [46 STC 112 : 1980 UPTC 450], the Allahabad High Court considered a report of the Directorate of Marketing and Inspection, Ministry of Food and Agriculture, Government of India, in terms whereof four products were obtained from bones known as: (1) Bones sinews, (2) Crushed bones, (3) Bone grits, and (4) Bone meal. The characteristics of the said four products from bones are said to be different. The learned Judges also referred to the Standard Cyclopedia of Modern Agriculture, wherein a distinction had been drawn between `bone meal and `crushed bone, on the basis whereof it was opined: "6. As noted above in the instant case the assessee is dealing in crushed bones and not bone-meal. The distinction between the two-commodities is quite clear on the basis of the information contained in the report of the Directorate of Marketing and Inspection, Ministry of Food and Agriculture, Government of India and the Standard Cyclopaedia of Modern Agriculture referred to above. It is not possible, therefore, to hold that crushed bones are fertilisers. Apart from this the assessee himself does not appear to have been making sales of crushed bones as fertilisers. This commodity is not sold by the assessee in the country and the turnover of the years under consideration goes to show that almost the whole of it was in the form of exports to foreign countries. As noted above crushed bones are meant for use as raw material in the manufacture of glue and gelatine, the industries which have not developed to any appreciable extent in India and, hence, this commodity has to be exported to countries outside India." 9. Therein reliance was placed on the opinions of some experts to establish ‘crushed bone and ‘fertilizers. The Court, however, found the report of the Directorate of Marketing and Inspection more creditworthy, opining that bone-meal and not crushed bones can be treated as fertilizers. 10. Moreover, it is well-known that the question as to whether a commodity would be exigible to sales tax or not must be considered having regard to its identity in common law parlance. If, applying the said test, it is to be borne in mind that if one commodity is not ordinarily known as another commodity; normally, the provisions of taxing statute in respect of former commodity which comes within the purview of the taxing statute would be allowed to operate. In any event, such a question must be determined having regard to the expert opinion in the field. We have noticed hereinabove the difference between ‘bone meal and `crushed bone. Different utilities of the said items has also been noticed by the Allahabad High Court itself. The High Court or for that matter, the Tribunal did not have the advantage of opinion of the expert to the effect as to whether crushed bones can be used only for the purpose of fertilizer or whether crushed bones are sold to the farmers for use thereof only as fertilizer. 11. For the reasons aforementioned, we set aside the orders of the Assessing Authorities including that of the High Court. However, we intend to leave the question open for subsequent cases, if any. 12. There is another aspect of the matter, notice whereof must be taken by us, viz., the Assessing Authority proceeded to determine the taxability in view of the decisions, as were prevailing. It sought to rectify its order keeping in view the subsequent decisions. The question which arose for consideration before the Tribunal was as to whether the Assessing Authority could pass such an order having regard to the power of rectification in terms of Section 22 of the Act. 13. This aspect of the matter has been considered in The Income – Tax Officer, Alwaye vs. The Ashok Textiles Ltd., Alwaye [(1961) 3 SCR 236] wherein it was held that the provisions for rectification of "mistakes apparent on the record" cannot be equated with a power of a civil court to review its own order as envisaged under Order XL VII Rule 1 of the Code of Civil Procedure stating: "The learned Judges of the High Court seem to have fallen into an error in equating the language and scope of s. 35 of the Act with that of O.47, r.1, Civil Procedure Code. The language of the two is different because according to s. 35 of the Act which provides for rectification of mistakes the power is given to the various income-tax authorities within four years from the date of any assessment passed by them to rectify any mistake "apparent from the record" and in the Civil Procedure Code the words are "an error apparent on the face of the record" and the two provisions do not mean the same thing." 14.

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

Explanation:
1[ds]is well-known that the question as to whether a commodity would be exigible to sales tax or not must be considered having regard to its identity in common law parlance. If, applying the said test, it is to be borne in mind that if one commodity is not ordinarily known as another commodity; normally, the provisions of taxing statute in respect of former commodity which comes within the purview of the taxing statute would be allowed to operate. In any event, such a question must be determined having regard to the expert opinion in the field. We have noticed hereinabove the difference between ‘bone meal and `crushed bone. Different utilities of the said items has also been noticed by the Allahabad High Court itself. The High Court or for that matter, the Tribunal did not have the advantage of opinion of the expert to the effect as to whether crushed bones can be used only for the purpose of fertilizer or whether crushed bones are sold to the farmers for use thereof only as fertilizer.