Case title:
M/S Triveni Glass Limited Rep V. Commissioner of Trade Tax, U.P.
Date of Order:
9th October, 2023
Bench:
Hon'ble Justice S. Ravindra Bhat
Hon'ble Justice Aravind Kumar
Parties:
Petitioner: M/S Triveni Glass Limited Rep
Respondent: Commissioner of Trade Tax, U.P.
SUBJECT:
The notification dated September 7, 1981, is unambiguous, and it includes "all goods and wares made of glass" that are subject to taxation, but excludes "plain glass panes."
OVERVIEW
- The appellant is in the business of producing and selling sheet glass, coloured glass, figured glass, wired glass, float glass, and tinted glass.
- The assessing officer stated following an inquiry that tinted glass was produced by the assesses in a separate facility using a different process than that used to manufacture sheet glass. T
- his was after taking note of the books of accounts submitted during the assessment proceedings.
- In his assessment orders, he goes on to say that coloured glass is neither recognized or understood as sheet glass in everyday speech.
- Because of this, the assessing officer levied a 15% tax on the sale of the products, arguing that they were under the heading of "all goods and wares made of glass" rather than "plain glass," as stated in Notification No. 5784.
ISSUES RAISED
Whether “tinted glass sheets” manufactured by the appellants is liable to be taxed as “goods or wares made of glass”?
JUDGEMENT ANALYSIS
- The appeals are denied because the court determined that there would be no need for intervention with the contested decisions.
- The business premises of the appellant was inspected by Special Investigation Branch of the Department and it was revealed that “tinted glass sheet” was being manufactured through a different process.
- The notification dated September 7, 1981, is unambiguous, and entry No. 4 is unambiguous as well.
- It includes "all goods and wares made of glass" that are subject to taxation, but excludes "plain glass panes."
- Since the exemption was created by the statute itself, it must be strictly interpreted, and any ambiguity in the exemption clause must be used to the revenue's advantage.
CONCLUSION
The Supreme Court of India has clarified the taxation rules pertaining to products made of glass. The Court's decision maintained that the appellant's production of "tinted glass sheets" falls under the category of "all goods and wares made of glass" as stated in the 1981 notification, thereby making it liable for taxation. This ruling is based on a strict interpretation of the statutory exemption clause, with the Court emphasizing the exclusion of "plain glass panes" from the purview of the tax. Consequently, the Court upheld the assessing officer's decision, refusing to intervene in the matter, thus setting a precedent for the taxation of specific glass products under the ambit of the aforementioned statute.
