Case ID: 4301

Judgment:
Civil Appeal No. 631 of 1973. Appeal by Special Leave from the Judgment and Order dated 14/16th November	 1970 of the Gujarat High Court in Sales Tax Reference No. 9/69. R. P. Bhatt and section P. Nayar for the Appellant. Appeal Set down ex Parte against respondent. The following Judgments were delivered. BHAGWATI	 J. I have had the advantage of reading the judgment prepared by my learned brother Sen and I entirely agree with the conclusion reached by him	 but I would like to state briefly my 873 own reasons for arriving at that conclusion. The facts giving rise to this appeal have been stated with admirable succinctness by my learned brother Sen and I need not repeat them. The facts in deed are not material	 because only one single question of law arises for determination in this appeal and it does not depend on any particular facts. The question is a very simple one	 namely	 whether the expression 'Registered dealer ' in sec.8(ii) of the Bombay Sales Tax Act	 1959 as applicable to the State of Gujarat (hereinafter referred to as the Bombay Act) means only a dealer registered under section 22 of that Act or it also comprises a dealer registered under the (hereinafter referred to as the Central Act). Since the decision of this question turns on the true interpretation of the expression 'Registered dealer '. in sec.8(ii) of the Bombay Act	 we may reproduce that section as follows: "Sec.8: There shall be levied a sales tax on the turn over of sales of goods specified in Schedule C at the rate set out against each of them in column 3 thereof	 but after deducting from such turnover (i) * * * * (ii) resales of goods purchased by him on or after the appointed day from a Registered dealer if the goods at the time of their purchase were goods specified in Schedule C". This section has obviously been enacted to prevent multiple point taxation on goods specified in Schedule C. Where goods specified in Schedule 'C ' are sold by a dealer and obviously he must be a dealer registered under section 22 of the Bombay Act	 if he is liable to pay tax under that Act the turnover of these sales is liable to be taxed at the rate specified against each category of goods in that Schedule	 but if the sales in question are re sales of goods purchased by the dealer on or after the appointed day from a 'Registered dealer '	 they would be liable to be excluded from the turnover	 because the 'Registered dealer ' from whom they are purchased would have paid tax under the main part of section 8 and the goods having already borne tax in the hands of the selling 'Registered dealer '	 the legislative intent is that they should not suffer tax again. Now the expression 'Registered dealer ' is defined in section 2(15) of the Bombay Act to mean "a dealer registered under section 22" and therefore	 ordinarily	 the expression 'Registered dealer ' as used in section 8(ii) must carry the same meaning	 namely	 a dealer registered under section 22 of the Bombay Act. But	 as the opening part of section 2 shows	 the definitional meaning is subject to anything repugnant in the subject or 874 context. The context in which the defined word occurs may clearly indicate that it is used in a sense different from that given in the definition clause. We must therefore see whether there is anything in section 8(ii) or in the context in which it occurs which should compel us to place on the expression 'Registered dealer ' as used in that section a meaning different from that given to it in section 2(15). We are afraid we do not find anything in the subject or context of sec.8(ii) which would persuade us to depart from the definitional meaning of the expression 'Registered dealer '. The subject and context in fact re enforce the view that the expression 'Registered dealer ' in sec.8(ii) is used to mean a dealer registered under sec.22 of the Bombay Act	 and does not include a dealer registered only under the Central Act. If a dealer is registered only under the Central Act and not under the Bombay Act	 it would mean that he is not liable to pay tax under the Bombay Act and in that event	 even if he has sold goods specified in Schedule 'C '	 to a registered dealer under an intra State sale	 no tax would be payable by him on such sale and if the purchasing dealer is also to be exempt from tax in respect of re sale effected by him	 the result would be that the goods would escape tax altogether and not suffer even single point tax. That surely could not have been the intendment of the legislature in enacting section 8(ii). It would indeed frustrate the object of section 8(ii) which is to provide for imposition of single point tax on the goods specified in Schedule 'C '. The situation would be the same even where the sale effected by the dealer registered under the Central Act is an inter State sale. That sale would undoubtedly be taxable under the Central Act	 but it is difficult to see why the Gujarat State should give exemption to re sale of goods in respect of which	 at the time of the first sale	 tax has been levied under the Central Act of which the benefit has gone to another State. Moreover	 in such a case	 the first sale being an inter State sale	 would be taxable at a fixed concessional rate under section 8(1)(a) or at the rate of 7% or at a rate equal to or twice the rate applicable to the sale of such goods in the State of the selling dealer	 under clause (a) or (b) of sub section (2) of sec. 8 of the Central Act and if that be so	 it is impossible to understand why the Legislature should have insisted	 for attracting the applicability of section 8(ii)	 that the goods resold by the dealer should at the time of their first sale be goods specified in Schedule 'C '. The requirement that the goods at the time of their first sale by the 'Registered dealer ' should be of one of the categories specified in Schedule 'C '	 is a clear pointer that the 'Registered dealer ' contemplated in this provision is a dealer registered under section 22 of the Bombay Act	 because it is only with reference to such a dealer liable to pay tax under the Bombay Act that this 875 requirement of the goods sold by him being goods specified in Schedule 'C ' can have any meaning and significance. We are	 therefore	 clearly of the view that the expression 'Registered dealer ' is used in section 8(ii) in its definitional sense to mean a dealer registered under section 22 of the Bombay Act and it does not include a dealer registered under the Central Act. The Revenue	 however	 relied on section 4 of the Bombay Act and tried to project it in the interpretation of the expression 'Registered dealer ' in section 8(ii). We fail to see how section 4 can at all help in throwing light on the true interpretation of the expression 'Registered dealer '. That section provides: "Sec. 4(1): Notwithstanding anything in section 3	 a dealer who is registered under the 	 but who is not liable to pay tax under the said section 3	 shall nevertheless be liable to pay tax (a) on Sales of goods is respect of the purchase of which he has furnished a declaration under sub sec. (4) of section 8 of the 	 and (b) on sales of goods in the manufacture of which the goods so purchased have been used; and accordingly	 the provisions of sections 7 to 12 (both inclusive) shall apply to such sales	 as they apply to the sales made by a dealer liable to pay tax under section 3. (2) Every dealer who is liable to pay tax under sub section (1) shall	 for the purposes of sections 32	 33	 35	 36	 37	 38	 46	 47 and 48 be deemed to be a Registered dealer. " It is obvious that if a dealer is not registered under the Bombay Act	 it could only be on the basis that he is not liable to pay tax under the Bombay Act	 but even so	 section 4	 sub section (1) provides that if he is registered under the Central Act	 he would be liable to pay tax under the Bombay Act in respect of the transactions of sale set out in that section. This liability arises despite the fact that the dealer	 not being liable to pay tax under section 3 of the Bombay Act	 is not registered under that Act. The question then would be: if the dealer is not registered under the Bombay Act	 how to recover the tax from him? The dealer not being registered under the Bombay Act	 the machinery of the Bombay Act would not of itself apply for recovery of tax from him. Section 4	 sub section (2) therefore enacts that every dealer who is liable to pay tax under sub section (1) shall	 for the purposes of sections 32 to 38 and 46 876 to 48 be deemed to be a Registered dealer. Sections 32 to 38 and 46 to 48 are machinery sections and it is for the purpose of making the machinery of these sections applicable for recovery of the tax imposed on the dealer under sub section (1) of section 4 that an artificial fiction is created deeming the dealer to be a Registered dealer	 that is	 a dealer registered under section 22 of the Bombay Act. This legal fiction is created for a specific purpose and it is limited by the terms of sub section 2 of section 4 and it cannot be projected in section 8(ii). Section 4 has	 in fact	 nothing to do with section 8(ii). They are distinct and independent provisions operating on totally different areas	 and it is difficult to see how section 4 can be availed of for the purpose of interpreting the expression "Registered dealer" in section 8(ii). I would therefore set aside the judgment of the High Court under appeal and answer the question referred by the Tribunal in favour of the Revenue and against the assessee. There will be no order as to costs of the appeal. SEN	 J. This appeal	 by special leave	 is from a judgment of the Gujarat High Court	 upon a question of law referred to it under sub s.(1) of s.61 of the Bombay Sales Tax Act	 1959 (hereinafter referred to as 'the Act '). By that judgment the High Court answered the question referred in the affirmative and in favour of the assessee. The point involved is of considerable importance. The facts giving rise to the reference were these: Messrs Union Medical Agency	 Ahmedabad was	 at all material times	 carrying on business in spirit and alcohol	 and was a dealer registered under s.22 of the Act (hereinafter referred to as 'the assessee '). In the assessment year 1964 65	 the corresponding accounting year of which was the year ending March 31	 1965	 the assessee claimed deduction from its turnover in respect of resales of certain goods purchased from one Motibhai Gopalbhai Patel of Baroda who	 at the relevant time	 was a dealer registered under s.7 of the (hereinafter referred to as 'the Central Act ')	 but was not a dealer registered under section 22 of the Act. The Sales Tax Officer rejected the claim of the assessee for such deduction on the ground that the said Motibhai Gopalbhai Patel from whom the goods were purchased was not a registered dealer within the meaning of cl.(ii) of s.8 of the Act inasmuch as he was not registered as a dealer under s.22 of the Act. The assessee appealed to the Assistant Commissioner of Sales Tax	 the only material ground being that the expression 'registered dealer ' in cl. (ii) of section 8 of the Act was wide enough to 877 include a registered dealer under the but the Assistant Commissioner affirmed the disallowance of the deduction. On further appeal	 the Gujarat Sales Tax Tribunal agreeing with the Sales Tax Authorities	 held that in order to claim deduction from the turnover of sales of goods under cl. (ii) of section 8 of the Act	 what was required to be shown was that the goods were purchased by the dealer on or after the appointed day from a 'registered dealer ' under the Act	 and that in view of the definition of the expression 'registered dealer ' in sub s.(25) of s.2 of the Act	 such dealer had to be a dealer registered under s.22 of the Act. The Tribunal accordingly held that since Motibhai Gopalbhai Patel	 the Baroda dealer	 from whom the assessee had purchased the goods	 was not a registered dealer under the Act	 therefore the requirements of cl.(ii) of s.8 of the Act were not fulfilled	 and the claim for deduction made by the assessee had been rightly disallowed. On the application of the assessee	 the Tribunal referred the following question of law to the High Court under sub section (1) of section 61 of the Act	 for its opinion	 namely: "Whether for the purpose of allowing deduction from the turnover of sales under clause (ii) of section 8 of the Bombay Sales Tax Act	 1959	 purchases of goods made by a dealer registered under the Bombay Sales Tax Act	 1959 from a dealer registered under the but not registered under the Bombay Sales Tax Act. 1959 can be said to be purchases of goods made from a registered dealer within the meaning of clause (ii) of section 8 of the Bombay Sales Tax Act	 1959. " It appears that the High Court was not satisfied at this formulation as it felt that the statement of the case as made by the Tribunal did not bring out the real question of law arising out of its order. At the instance of the assessee	 it re framed the question in the following terms: "Whether for the purpose of allowing deduction from the turnover of sales under clause (ii) of section 8 of the Bombay Sales Tax Act	 1959	 purchases of goods made by a dealer registered under the Bombay Sales Tax Act	 1959 from a dealer who is registered under the and who is liable to pay tax under section 4 of the Bombay Sales Tax Act	 1959 though not registered under the Bombay Sales Tax Act	 1959 can be said to be purchases of goods made from a registered dealer within the meaning of clause (ii) of section 8 of the Bombay Sales Tax Act	 1959. " 878 We feel that the High Court was not justified in re framing the question as referred. It is nobody 's case that Motibhai Gopalbhai Patel	 the Baroda dealer from whom the assessee had purchased the goods	 had ever paid any tax on the sales effected by him under s.4 of the Act. Nor is there any material on record to suggest that any proceedings were started against the Baroda dealer for subjecting the transactions to tax. In answering the reference in the affirmative	 in favour of the assessee and against the Commissioner of Sales Tax	 the High Court observes: "The result of the foregoing discussion is that having regard to the context	 collocation and the object of the expression 'registered dealer ' in clause (ii) of section 8 of the Bombay Act	 and having regard to the policy of the Act	 the said expression would also include a dealer registered under the Central Act on whom special liability to pay sales tax has been imposed under section 4 of the Act. A dealer who purchases goods from a dealer registered under the Central Act	 who is liable to pay sales tax on the sale of the said goods by virtue of the provisions of section 4 of the Bombay Act	 would	 therefore	 be entitled to deduct from his turnover of sales of goods	 resales of goods so purchased by him on or after the appointed day if the goods	 at the time of their purchase	 were goods specified in Schedule C." This conclusion of the High Court can hardly be supported. The short question that falls for determination in the appeal is whether the expression 'registered dealer ' in cl.(ii) of s.8 of the Act must bear the meaning that is assigned to it in section 2(25) which is the definition section	 or the said expression is capable of bearing an enlarged meaning	 in view of the subject and context in which it is used in cl.(ii) of s.8 of the Act. The decision of the appeal must turn on the construction of cl.(ii) of s.8 of the Act	 which provides: "8. There shall be levied a sales tax on the turnover of sales of goods specified in Schedule C at the rate set out against each of them in column 3 thereof	 but after deducting from such turnover: (i) * * * * * * * (ii) resales of goods purchased by him on or after the appointed day from a Registered dealer if the goods at the time of their purchase were goods specified in Schedule C." 879 In the Act	 the expression 'registered dealer ' is defined in section 2(25) in these terms: "2. In this Act	 unless the context otherwise requires	 (25) "Registered dealer" means a dealer registered under section 22. " The error in the decision of the High Court lies in its misunderstanding of the scope and effect of section 4 of the Act	 which it has tried to project into cl. (ii) of section 8 and it reads as follows: "4. (1) Notwithstanding anything in section 3	 a dealer who is registered under the 	 but who is not liable to pay tax under the said section 3	 shall nevertheless be liable to pay tax (a) on sales of goods in respect of the purchase of which he has furnished a declaration under sub section (4) of section 8 of the 	 and (b) on sales of goods in the manufacture of which the goods so purchased have been used	 and accordingly	 the provisions of sections 7 to 12 (both inclusive) shall apply to such sales	 as they apply to the sales made by a dealer liable to pay tax under section 3. (2) Every dealer who is liable to pay tax under sub section (1) shall	 for the purposes of sections 32	 33	 34	 35	 36	 37	 38	 46	 47 and 48 be deemed to be a Registered dealer. " Sub section (3) of section 7 reads: "7.(3) In order to ensure that after the date of the coming into force of section 15 of the 	 tax shall not be levied on the sales or purchases of Declared goods at more than one stage	 it is hereby provided that if under this Act or any earlier law	 any tax has been levied or is leviable on the sale or purchase of such goods then no further tax shall be levied under this Act on any subsequent sale or purchase thereof; and accordingly	 for the purpose of arriving at the taxable turn over of sales or purchases of a dealer	 there shall be deducted from his total turnover of sales	 or as the case may be	 of purchases	 the sales or purchases of such declared goods as have borne tax at any earlier stage. " There is no obscurity in the language of cl. (ii) of section 8 of the Act. It is clear from the terms of cl. (ii) of section 8 that no deduction is claimable in respect of resales of goods purchased from a dealer registered under the Central Act	 who is not a registered dealer within the meaning of section 2(25) of the Act. It follows that the 880 expression 'registered dealer ' in cl. (ii) of section 8 of the Act must bear the meaning of that expression as given in section 2(25) of the Act. If the meaning of the section is plain	 it is to be applied whatever the result. It is a well settled principle that when a word or phrase has been defined in the interpretation clause	 prima facie that definition governs whenever that word or phrase is used in the body of the statute. But where the context makes the definition clause inapplicable	 a defined word when used in the body of the statute may have to be given a meaning different from that contained in the interpretation clause; all definitions given in an interpretation clause are	 therefore	 normally enacted subject to the usual qualification 'unless there is anything repugnant in the subject or context '	 or 'unless the context otherwise requires '. Even in the absence of an express qualification to that effect such a qualification is always implied. The expression 'registered dealer ' having been defined in s.2(25) of the Act as having a particular meaning	 i.e.	 a dealer registered under section 22 of the Act	 it is that meaning alone which must be given to it in interpreting cl. (ii) of s.8 of the Act	 unless there is anything repugnant to the context. It was not permissible for the High Court to ignore a statutory definition and give to the expression a wider meaning independent of it. There is nothing to suggest that the expression 'registered dealer ' is used in cl. (ii) of s.8 of the Act in any different sense from that in ' which it is defined. It is significant to notice that whenever the legislature wanted that the expression 'registered dealer ' should have a different meaning	 it has expressly said so. Thus in sub s.(1) of s.4 it mentions of 'a dealer who is registered under the '. The distinction between the two classes of dealers is	 therefore	 clearly maintained. The High Court was obviously wrong in not interpreting the expression 'registered dealer ' in the context of cl. (ii) of s.8 but with reference to the other provisions of the Act	 particularly in the light of section 4 of the Act	 to give effect to the so called legislative intent for the levy of a single point tax. It was in error in making an exposition ex visceribus actus and in relying upon the leading cases of Bywater vs Brandling	 Rein vs Lane	 Jobbins vs Middlesex Country Council Craies on Statute Law	 6th ed.	 99	 and Maxwell on Interpretation of Statutes	 8th ed.	 30. The High Court expresses the view that the legislative intent in enacting cl. (ii) of s.8 of the Act is two fold (1) to restrict the levy 881 of sales tax to a single point and to avoid multiple levy of sales tax on goods	 and (2) that sales tax should be levied at the stage of the first sale and should be recovered from the registered dealer who effects the first sale and that all subsequent sales of such goods should not be subjected to sales tax over again. In the light of this so called legislative intention and the policy of the Act	 the High Court observes that 'having regard to the context	 collocation and the object of the expression 'registered dealer ' in cl.(ii) of s.8 of the Act '	 and 'having regard to the legislative intent	 namely	 to levy a single point tax under sub s.(3) of s.7 of the Act '	 the expression 'registered dealer ' in cl. (ii) of s.8 would also include a dealer registered under the 	 on whom a special liability to pay sales tax has been imposed under s.4. Upon that view	 it held that a dealer who purchased goods from a dealer registered under the Central Act	 who was liable to pay sales tax on the sale of such goods by virtue of the provisions of s.4 of the Act	 would be entitled to deduct from his turnover of sales of goods	 resales of goods so purchased by him on or after the appointed day if the goods at the time of their purchase	 were goods specified in Schedule C of the Act. It accordingly held that the meaning of the expression 'registered dealer ' in cl.(ii) of s.8 was not limited only to a dealer registered under the Act but it was wide enough to also include a dealer registered under the Central Act. There is no dispute with the proposition that the meaning of a word or expression defined may have to be departed from on account of the subject or context in which the word had been used and that will be giving effect to the opening sentence in definition section	 namely 'unless the context otherwise requires '. In view of this qualification	 the Court has not only to look at the words but also to look at the context	 the collocation and the object of such words relating to such matter and interpret the meaning intended to be conveyed by the use of the words in a particular section	 there is no scope for the application of the rule ex visceribus actus. This rule is never allowed to alter the meaning of what is of itself clear and explicit. The authorities relied upon by the High Court are	 therefore	 not applicable. While accepting that sub s.(3) of s.7 of the Act was to give effect to cl.(a) of s.15 of the Central Act	 and therefore cannot control the interpretation of cl.(ii) of s.8	 the High Court commits the mistake of interpreting the expression 'registered dealer ' appearing therein	 in the context of s.4 of the Act. The provisions of s.4	 sub s.(3) of s.7 and cl.(ii) of s.8 of the Act operate in three different fields. 882 While s.4 of the Act provides that a registered dealer under the Central Act who may not be liable to pay tax under s.3 of the Act may nevertheless in certain contingencies be liable to pay tax	 sub section (3) of s.7 provides for the levy of single point tax on sales in the course of inter state trade and commerce of declared goods	 to bring the Act in conformity with cl.(a) of s.15 of the Central Act. The object and purpose of enacting the provisions of s.8 are entirely different	 namely	 to lay down the mode of computation of the turnover of sales or purchases of a registered dealer for the imposition of a tax. Clause (ii) of s.8 allows for deduction of resales from the turnover of such registered dealer when the goods are purchased from a registered dealer	 i.e.	 a dealer registered under s.22 of the Act. In effect	 s.8 deals with transactions of sale or purchase taking place within the State. There is a fallacy in the reasoning of the High Court. It seems that the High Court was obsessed with two factors	 namely (1) the concept of a single point tax under sub s.(3) of s.7 of the Act	 and (2) the fact that a registered dealer under the Central Act who may not be liable to pay tax under s.3 of the Act may nevertheless in certain contingencies be liable to pay tax. It failed to appreciate that cl.(ii) of s.8 which allows for deduction of sales by one registered dealer to another	 deals purely with inside sales. The expression 'registered dealer ' in cl.(ii) of s.8 is sought to be given an enlarged meaning by stretching	 in effect	 the legal fiction contained in sub s.(2) of s.4. After observing that the legal fiction in sub s.(2) of s.4 is created for a limited purpose	 it goes on to observe: "It would	 therefore	 have been inappropriate or at any rate wholly inartistic for the legislature to provide in sub section (2) of section 4 that every dealer who is liable to pay tax under sub section (1) shall be deemed to be a registered dealer for the purpose of clause (ii) of section 8 since the latter section provides for the levy of sales tax on sales of goods of an altogether different dealer after making certain deduction from the turnover of sales of goods of such dealer. The legislature could have made a specific provision	 if any	 in this behalf only in clause (ii) of section 8 and not in sub section (2) of section 4." The High Court proceeds on the hypothesis that the transactions in question must have been brought to tax in the hands of the Baroda dealer and	 therefore	 it became necessary to avoid multiple levy of sales tax. On that assumption	 it felt that it was necessary to give to the assessee the benefit of s.8(ii) of the Act although the Baroda dealer was not a registered dealer within the meaning of 883 section 2(25) i.e.	 registered as a dealer under section 22 of the Act. We regret to say that in reaching that conclusion	 the High Court has proceeded on mere conjectures and surmises. For aught we know	 the Baroda dealer at the relevant time	 might not be engaged in the business of selling goods in the State of Gujarat and was	 therefore	 not a dealer liable to pay tax at all. Perhaps he was primarily engaged in effecting sales in the course of inter State trade and commerce	 or it may be that the inside sales effected by him did not exceed the taxable limits. Both the parties proceeded upon the basis that the purchases effected by the assessee were not subjected to tax. It was	 therefore	 not right for the High Court to hold that the disallowance of deduction claimed by the assessee under cl.(ii) of s.8 of the Act would result in double taxation of the same goods. It is evident that the High Court has completely misdirected itself. The transactions of sales effected by the Baroda dealer to the assessee who was a dealer at Ahmedabad	 were clearly inside sales. While it is true that the Baroda dealer being a dealer registered under s.7 of the was	 in certain contingencies	 liable to pay tax under s.4 of the Act	 but that circumstance by itself would not make him a 'registered dealer ' within the meaning of section 2(25) of the Act. If the legislature really intended that the expression 'registered dealer ' in cl.(ii) of s.8 should take within its ambit a dealer registered under the 	 upon whom liability to pay sales tax is imposed by s.4 of the Bombay Act	 it would have said so in clear words. It would have made necessary provision in that behalf in sub s.(2) of s.4 which provides that every dealer liable to pay tax under sub s.(1) shall be deemed to be a registered dealer for purposes of certain sections of the Bombay Act viz.	 sections 32	 33	 34	 35	 36	 37	 38	 46	 47 and 48. It is thus apparent that the legal fiction in sub s.(2) of s.4 is created for a limited purpose	 namely	 to make section 4 a self contained code which not only imposes a charge of tax and lays down the rate structure	 but also provides the machinery for assessment and recovery of tax and penalty. The legal fiction contained in sub s.(2) of s.4 of the Act cannot be stretched any further. For these reasons	 the judgment of the High Court answering the reference in favour of the assessee is set aside. The question referred by the Tribunal is answered in the negative and in favour of the Revenue. There shall be no order as to costs. S.R. Appeal allowed.

Summary:
Allowing the appeal by special leave and answering against the assessee	 the Court. ^ HELD: Per Bhagwati	J. (Concurring with Sen and Venkataramiah	 JJ.) (1) The expression "Registered dealer" is used in section 8 (ii) in its definitional sense to mean a dealer registered under section 22 of the Bombay Sales Tax Act and it does not include a dealer under the Central Sales Tax Act. [875A] (2) The object of section 8 is to prevent a multiple point taxation on goods specified in Schedule C and for imposition of single point tax on them under the Act. If a dealer is registered only under the Central Act and not under the Bombay Act	 it would mean that he is not liable to pay tax under the Bombay Act and in that event	 even if he has sold goods specified in Schedule 'C '	 to a registered dealer under an intra State sale	 no tax would be payable by him on such sale and if the purchasing dealer is also to be exempt from tax in respect of re sale effected by him	 the result would be that the goods would escape tax altogether and not suffer even single point tax. That is not the intendment of the legislature in enacting section 8(ii); on the contrary it would frustrate the very object of that section. The situation would be the same even where the sale effected by the dealer registered under the Central Act is an inter State sale. That sale would undoubtedly be taxable under the Central Act but there is no reason why the Gujarat State would give exemption to re sale of goods in respect of which	 at the time of the first sale tax has been levied under the Central Act of which the benefit has gone to another State. Moreover	 in such a case	 the first sale being an inter State sale	 would be taxable at a fixed concessional rate under section 8(1)(a) or at the rate of 7% or at a rate equal to or twice the rate applicable to the sale of such goods in the State of the selling dealer	 under clause (a) or (b) of sub section (2) of section 8 of the Central Act and if that be so	 it is difficult to understand why the Legislature should have insisted	 for attracting the applicability of section 8(ii)	 that the goods re sold by the dealer should at the time of their first sale be goods specified in Schedule 'C '. [873F G	 874C G] 871 (3) Sections 4 and 8(ii) of the Bombay Act are distinct and independent provisions operating on totally different areas. The legal fiction in sub section (1) of section (4) is created for a specific purpose and it is limited by the terms of sub section (2) of section 4 and it cannot be projected in section 8(ii). If a dealer is not registered under the Bombay Act	 it could only be on the basis that he is not liable to pay tax under the Bombay Act	 but even so	 section 4 sub section (1) provides that if he is registered under the Central Act	 he would be liable to pay tax under the Bombay Act in respect of the transactions of sale set out in that section. This liability arises despite the fact that the dealer	 not being liable to pay tax under section 3 of the Bombay Act	 is not registered under that Act. The dealer not being registered under the Bombay Act	 the machinery of the Bombay Act would not of itself apply for the recovery of tax from him. Section 4 sub section 2	 therefore	 enacts that every dealer who is liable to pay tax under sub section (1) shall	 for the purpose of sections 32 to 38 and 46 to 48 be deemed to be a registered dealer. Sections 32 to 38 and 46 to 48 are machinery sections and it is for the purpose of making the machinery of these sections applicable for recovery of the tax imposed on the dealer under sub section (1) of section 4 that an artificial fiction is created deeming the dealer to be a registered dealer	 that is	 a dealer registered under section 22 of the Bombay Act. Per Sen	 J. (On behalf of himself and Venkataramiah	 J.). (1) It is a well settled principle that when a word or phrase has been defined in the interpretation clause	 prima facie that definition governs whenever that word or phrase is used in the body of the statute. But where the context makes the definition clause inapplicable	 a defined word when used in the body of the statute may have to be given a meaning different from that contained in the interpretation clause; all definitions given in an interpretation clause	 are	 therefore	 normally	 enacted subject to the usual qualification "unless there is anything repugnant in the subject or context"	 or "unless the context otherwise requires". Even in the absence of an express qualification to that effect such a qualification is always implied. The expression "registered dealer" having been defined in section 2(25) of the Bombay Act as having a particular meaning	 that is	 a dealer registered under section 22 of the Act	 it is that meaning alone which must be given to it in interpreting clause (ii) of section 8 of the Bombay Act unless there is anything repugnant to the context [880B D] There being no obscurity in the language of clause (ii) of section 8 of the Bombay Act	 it is clear that no deduction is claimable in respect of re sales of goods purchased from a dealer registered under the Central Act	 who is not a registered dealer within the meaning of section 2(25) of the Act. It follows that the expression "registered dealer" in clause (ii) of section 8 of the Act must bear the meaning of that expression as given in section 2(25) of the Act. If the meaning of the section is plain it is to be applied whatever the result	 [879H 880A] (2) The meaning of a word or expression defined may have to be departed from on account of the subject or context in which the word had been used and that will be giving effect to the opening sentence in definition section	 namely	 "unless the context otherwise requires". In view of this qualification	 the Court has not only to look at the words but also to look at the context	 the collocation and the object of such words relating to such matter and interpret the meaning intended to be conveyed by the use of the words in a particular section. But where there is no obscurity in the language of the section	 872 there is no scope for the application of the rule ex visceribus actus. This rule is never allowed to alter the meaning of what is of itself clear and explicit. [881E G] Bywater vs Brandling	 ; Rein vs Lane	 and Jobbins vs Middlesex County Council	 Craies	 	 held inapplicable. (3) The provisions of section 4	 sub section (3) of section 7 and clause (ii) of section 8 of the Bombay Act operate in three different fields. While section 4 of the Act provides that a registered dealer under the Central Act who may not be liable to pay tax under section 3 of the Act may nevertheless in certain contingencies be liable to pay tax	 sub section (3) of section 7 provides for the levy of a single point tax on sale in the course of inter State trade and commerce of declared goods	 to bring the Act in conformity with clause (a) of section 15 of the Central Act. The object and purpose of enacting the provisions of section 8 are entirely different	 namely	 to lay down the mode of computation of the turnover of sales or purchases of a registered dealer for the imposition of a tax. Clause (ii) of section 8 allows for deduction of re sale from the turnover of such registered dealer when the goods are purchased from a registered dealer	 that is	 a dealer registered under section 22 of the Act. In effect	 section 8 deals with transactions of sale or purchase taking place within the State. The disallowance of deduction claimed by the assessee under clause (ii) of section 8 of the Act	 therefore	 would not result in double taxation of the same goods. [881H 882C	 883C] While it is true that the Baroda dealer being a dealer registered under section 7 of the Central Sales Tax Act	 in the instant case	 was in certain contingencies	 liable to pay tax under section 4 of the Act	 but that circumstance by itself would not make him a "registered dealer" within the meaning of section 2(25) of the Act. If the legislature really intended that the expression "registered dealer" in clause (ii) of section 8 should take within its ambit a dealer registered under the Central Sales Tax Act	 upon whom liability to pay sales tax is imposed by section 4 of the Bombay Act	 it would have said so in the clear words section (2) of section 4. The legal fiction in sub section (2) of section 4 is created for a limited purpose	 namely	 to make section 4 a self contained code which not only imposes a charge of tax and lays down the rate structure	 but also provides the machinery for assessment and recovery of tax and penalty. The legal fiction contained in sub section (2) of section 4 of the Act cannot be stretched any further. [883D E	 G]