Page 247 - ELT_2nd_15th April 2020_Vol 372_Part

2020 ] PEE CEE COSMA SOPE LTD. v. COMMISSIONER OF CENTRAL EXCISE, KANPUR 293

meat. In the Hindi version of the Notification for the word sweetmeat the word
‘Mithai’ is used. The word ‘Mithai’ has a definite connotation and it can be said
with reasonable amount of certainty that people in this country do not consider tof-
fee as ‘mithai’. The High Court committed a grave error in holding that as some
manufacturers of toffees sell their products by describing them as sweets. It can be
said that in commercial circles toffee is known as sweetmeat.”
[emphasis supplied]
37. The Supreme Court observed that though the definition of the word
‘sweetmeat’ is very wide and any food which is sweet and rich in sugarcane be
described as ‘sweetmeat’ and since ‘toffee is a confection of sugar and other ma-
terials and being rich in sugar would be ‘sweetmeat’ in its wider sense, but items
like ‘sweetmeat’, ‘namkeen’, ‘reori’ and ‘gazak’ are usually prepared by shop-
keepers and restaurants for selling them to the customers and they are not ‘man-
ufactured in a factory having plants and machinery. The object of declaring ex-
emption from payment of sales tax was to increase industrial activity within the
State of Uttar Pradesh by encouraging setting up of new industrial units or ex-
pansion, diversification or modernization by the existing industrial units. The
Supreme Court, therefore, observed that even though the word ‘sweetmeat’ used
in the exclusionary part of the exemption notification has a wide dictionary
meaning or connotation, but only that meaning should be given to it which
would achieve, rather than frustrate the object of granting exemption and a
meaning which does not lead to uncertainty or unintended results should be
avoided. The Supreme Court also observed that the High Court should have ap-
plied the test of popular parlance by finding out as how ‘toffee’ is understood in
the State of Uttar Pradesh.
38. In the present case, ‘soaps’ were exempted from payment of Excise
Duty if, in or in relation to the manufacture of such soap no process was carried
out with, the aid of ‘power or of steam’ for heating. In common parlance, ‘power’
is understood as ‘electricity’. Thus, though power may have a wider dictionary
meaning or connotation, but only that meaning should be given that would
achieve the object of granting exemption. The object behind granting exemption
from payment of excise duty to the manufacture of soaps in cases where in or in
relation to the manufacture of soap no process is carried out with the aid of pow-
er is to discourage the manufacturers from using electricity in the manufacture of
soap.
39. The matter can be examined from another angle and that is to look
to the Hindi version of the Tariff Act and the Exemption Notification. The Hindi
version of sub-heading 3401.12 of the Tariff Act is as follows :-
3401.12 --- ,slk lkcqu ftlds fofuekZ.k esa ;k mlds laca/k esa dksbZ rkiu izfØ;k
fo|qr ;k Hkki dh lgk;rk ls u dh tkrh gksA
40. The Hindi version of the Exemption Notification dated 24 February,
2005 that came into effect from 28 February, 2005 is as follows :-

Äe v/;k; ;k eky o.kZu 'kqYd dh
la Ükh"kZ ;k nj
miÜkh"kZ ;k
VSfjQ en

EXCISE LAW TIMES  15th April 2020  263