Ramavtar Budhaiprasad v. Assistant Sales Tax Officer

• Should a general word cover a specific item that had been listed separately?
• Do betel leaves fall within “vegetables” under the CP & Berar Sales Tax Act, 1947?
• Did the legislature intend to tax betel leaves after the amendment?

• Popular meaning rule: Words of daily use in a tax law are read as ordinary people understand them, not in technical or botanical senses.
• Separate listing implies distinction: If the Schedule lists two items separately, they belong to different categories.

Held: The Supreme Court dismissed the petitions with costs. In popular language, “vegetables” are edible plants used as food. Betel leaves are not eaten as food; they are chewed as a stimulant or flavouring. They are, therefore, not “vegetables” for exemption.

• Separate items: “Vegetables” and “betel leaves” were listed apart—showing different categories.
• Amendment effect: Removal of “betel leaves” did not move them into “vegetables”; it revealed an intent to tax them.
• Interpretation: Use common parlance, not technical/botanical meaning, in taxing statutes.

General words in a taxing statute are read in their popular sense. A prior separate listing of “betel leaves” shows the legislature treated them differently from “vegetables”. After the omission, they did not merge into “vegetables”; they remained taxable.

• Exam tool: Clean example of common-parlance interpretation in tax law.
• Drafting signal: Separate Schedule entries carry meaning; later changes can show intent.
• Practice check: Do not rely on scientific definitions when the statute uses everyday words.

Mnemonic: POP BETEL — POPular meaning, Betel not food, Entries separate, Tax intent shown, Exemption denied, Leaves taxable.

1. Ask: What would common people call a “vegetable”?
2. Check: Were “betel leaves” listed separately before?
3. Conclude: No food use → not vegetables → taxable.

Issue: Are betel leaves “vegetables” for exemption under the Act after the Schedule amendment?

Rule: Popular meaning in tax law; separate Schedule items indicate distinct categories.

Application: In common usage, vegetables are eaten as food. Betel leaves are chewed, not eaten as food. Separate earlier listing confirms different class.

Conclusion: Betel leaves are not “vegetables”; they are taxable. Petitions dismissed with costs.

Popular Meaning

The ordinary sense understood by common people, not technical usage.

Schedule

An attachment to a statute listing items for exemption or taxation.

Exemption

A statutory release from a tax otherwise payable.