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PETITIONER: PANDURONGA TIMBLO INDUSTRIES ETC. ETC.

       Vs.

RESPONDENT: UNION OF INDIA AND ORS.

DATE OF JUDGMENT13/03/1992

BENCH: AHMADI, A.M. (J) BENCH: AHMADI, A.M. (J) RAMASWAMY, K.

CITATION:  1992 AIR 1194            1992 SCR  (2) 210  1992 SCC  (2) 635        JT 1992 (2)   277  1992 SCALE  (1)674

ACT:      Constitution of India, 1950:      Schedule  VII,  List  II,  Entry  58-Tax  on   ’Barge’- Competency of State Legislature to enact Goa, Daman and Diu Barge Tax Act, 1973.      Goa  Daman and Diu Barge Tax Act, 1973/Goa,  Daman  and Diu Barge Tax Rules, 1975:      Sections  2(1)  and  3/Rules 6 and  7-Levy  of  tax  on ’Barge’-Constitutional    validity   of-Barge-Meaning    of- Constitution  of India, 1950: Schedule VII, List  II,  Entry 58-General Clauses Act, 1897 : Section 3(55) and 3(63).      Words and Phrases-Word ’Barge’-Meaning of.

HEADNOTE:      The  constitutional  validity  of  the  tax  levied  on barges, used or kept for use in the Union Territory of  Goa, Daman  and  Diu, under Section 3 of the Goa, Daman  and  Diu Barges  Tax  Act,  1973 was challenged  by  the  appellants, contending  that  the  word  ’boat’  could  not  include   a mechanically propelled vessel, and since the definition of a ’barge’  in  section 2(1) of the Act  meant  a  mechanically propelled  water  craft used or capable of being used  as  a means of transport of minerals, it could not be termed as  a boat to attract the legislative power conferred by Entry  58 in  List  II of the VIIth Schedule and the  legislation  was clearly incompetent; that from the definitions of ’ship’ and ’vessel’  in  Section 3(55) and 3 (63) respectively  of  the General  Clauses Act, 1897, it was clear that a  ’boat’  was not  a ’ship’ but a vessel  exclusively propelled  by  oars, and  thus  a  boat  was  a  small  vessel  not  mechanically propelled, but propelled exclusively by oars and Entry 58 in List  II of the VII Schedule could be invoked for levying  a tax  on  such  a  vessel, and not  a  ’barge’  which  was  a mechanically propelled water craft; that the entire field in regard  to  mechanically propelled vessels  was  covered  by Entries 24,25 and 27 of List I and Entries 31 and 32 of List III  of  the VIIthe Schedule and, therefore,  the  scope  of Entry 58 in List                                                        211 II  of the VIIthe Schedule was clearly confined  to  vessels other than mechanically propelled vessels, like small boats,

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and, therefore, the word ’boat’ in Entry 58 in List II  must receive  a  narrow meaning and must be limited to  a  vessel exclusively propelled by oars.      On  behalf  of  the State, it was  contended  that  the Legislature was competent to enact the Act by virtue of  the power conferred by Entry 58 in List II of the VIIth Schedule to the Constitution of India, which permitted levy of ’taxes on  animals  and boats’, and since barges  were  boats,  the Legislature  was  competent to levy and collect the  tax  on barges.      Dismissing the appeals this Court,      HELD 1.1 Boats of all descriptions can be taxed by  the State Legislature by reason of the power conferred by  Entry 58  in List II of the VIIth Schedule to the Constitution  of India, 1950. [219H]      1.2  A ’barge’ is a large flat-bottomed boat  used  for transporting heavy burdens on canals and rivers, but is  not generally an ocean-going vessel. It may or may not be fitted with  an  engine  depending  on  its  calibration.   It   is essentially  a  freight-boat  chiefly meant  for  canal  and river-navigation.   Barges can be of different siz  and  may be  propelled  by oars, sails or  engines.   They,  however, belong  to the family of boats and not ships.  Section  2(1) of  the  Act also defines it as a water  craft  mechanically propelled  and used or capable of being used as a  means  of transport of minerals.  Thus, the legislature has carved out only   mechanically  propelled  barges  for  tax   purposes. Therefore,  the  State Legislature was competent to  tax  it under Entry 58 of List II. [217 G-H, 218A-C]      1.3  According  to  the General Clauses  Act  a  ’ship’ includes  a vessel of every description used  in  navigation and  not exclusively propelled by oars.  A ’vessel’, on  the other hand, is a ship or a boat or any other description  of vessel  used for navigation.  Therefore, a vessel  which  is exclusively  propelled  by oars would not  fall  within  the definition  of  a  ship but would be  covered  by  th  wider definition  of  a  vessel.  From these  two  definitions  it cannot  be inferred that a mechanically propelled vessel  is not  a  boat for the simple reason that  the  definition  of vessel   is  wide  enough  to  include  a  ship   which   is mechanically propelled.  Both the definitions are  inclusive definitions  and the definition of vessel is wide enough  to include  boats  of  every  description,  both   mechanically propelled and those                                                        212 propelled  exclusively by oars.  Further no distinction  can be  drawn  on the basis of the size of the  vessel.   Merely because the Act and the Rules cover barges ranging from less than  100 tonnes to 350 tonnes and above, it cannot be  said that   such  large  size  vessels  which  are   mechanically propelled cannot be called boats.  Since barges are used for transporting  heavy  burdens on canals and rivers  -  inland waters  -  and  for loading and unloading  ships  which  are anchored away as they can not enter shallow waters, they are bound to be heavy vessels which can take the load.  For that reason  they do not cease to be flat-bottomed boats  and  in ordinary parlance they cannot be described as ships.  [218D- E, G-H, 219A]      1.4  It  is well-settled that the  legislative  entries must be interpreted widely unless the language of the  entry or  the context requires that it be given a narrow  meaning. Neither the language of Entry 58 in List II nor the  context in  which  the  word  ’boats’  is  used  therein  calls  for confining its scope to boats exclusively propelled by  oars. The  language of Entries 24,25 and 27 in List I and  Entries

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31 and 32 in List III do not justify a narrow meaning to  be given  to  the word ’boats’ in Entry 58 of List  ii.   These entries  have nothing to do with the subject of levy of  tax on boats. [219D-E]

JUDGMENT:      CIVIL APPELLATE JURISDICTION : Civil Appeal No 1511  of 1980.      On  appeal by Certificate from the Judgment  and  Order dated 29.4.1980 of Judicial Commissioner, Goa, Daman and Diu in Special Civil Application No.26 of 1976.                                 WITH                    Civil Appeal No. 1973 & 2851 of 1980.               S.K.  Mehta, Aman Vachher, Dhruv  Mehta  (NP),          R.F. Nariman and Mrs. A. Verma for the Appellants.               Bed  Brat  Barua, Ms A.  Subhashini  (NP)  and          Ashok Bhan for the Respondents.               The Judgment of the Court was delivered by      AHMAD,  J.  Is  a  barge a boat?  The  answer  to  this question will determine the challenge to the  constitutional validity of the tax levied.                                                        213 on  a barge under the Goa, Daman and Diu Barge Tax Act,  1973 (hereinafter  called ’the Act’).  It is contended  that  the State  Legislature was competent to enact the Act by  virtue of  the power conferred by Entry 58 in List II of the  VIIth Schedule to the Constitution of India which permits levy  of ’taxes on animals and boats’.  If barges are not boats,  the Act will lose the cover provided by the said entry and  will be rendered unconstitutional.      The Act, as the Preamble shows, wa enacted to impose  a tax  on barges in the Union Territory of Goa, Daman and  Diu and  for  matters connected therewith and was  brought  into force  with effect from 1st March, 1971.  ’Barge’  according to  section  2(1)  means every description  of  water  craft mechanically  propelled and which is used or is  capable  of being  used  as means of transport of minerals.   Section  3 which  is the charging section provides that there shall  be levied  and collected on all barges use or kept for  use  in the  Union  Territory,  a  tax at the  rates  fixed  by  the Government, by notification in the Official Gazette, but not exceeding the maximum rates specified in the Schedule to the Act reads as under:                           SCHEDULE                         (Section 3) ------------------------------------------------------------ Capacity of Barge             Maximum annual                                         rate per tonne ------------------------------------------------------------ Less than 100 tonnes                    Rs. 3.50      100 tones and less than 200 tonnes      Rs. 5.00      200 tonnes and less than 350 tones      Rs. 6.00      350 tonnes and above                    Rs. 7.50 ------------------------------------------------------------ Note: When tax is not paid for the whole year at a time, but is  paid  for  one or more quarters at a time,  the  tax  so payable  for each quarter shall be an amount equal  to  one- fourth    of  the  annual  tax plus ten  per  cent  of  that          amount."      Section  19  empowers the Government to make  rules  to carry  out the purpose of the Act,  In exercise of the  said power  the Government by a notification framed rules  called the Goa, Daman and Diu Barge Tax Rules,

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                                                      214 1975.   Rule  6  lays down that every owner  or  the  person having  possession  or  control  of a  barge  in  the  Union Territory  shall  pay to the Government a tax at  the  rates specified in the table below :                            TABLE ------------------------------------------------------------ Capacity of Bar            Rate of tax payable per                                      annum per tonne ------------------------------------------------------------ Less than 100 tonnes                   Rs. 3.50 p.      100 tonnes and less than 200 tonnes     Rs. 5.00 p.      200 tonnes and less than 350 tonnes     Rs. 6.00 p.      350 tonnes and above                    Rs. 7.50 p. ------------------------------------------------------------      The  rates  which  have been  specified  are  the  same specified  in  the Schedule to the Act. For the  purpose  of levy of tax under rule 7, the Taxation Authority may require the  barge  to  be calibrated  i.e.  identify  the  carrying capacity with reference to its structural strength,  reserve buoyancy  and safe working height above water level. Rule  8 lays down the mode of payment. Rule 9 provides for the issue of  tax licence and Tax Token and rule 10 provides for  levy of penalty for failure to pay the tax.  Rule 11 empowers the seizure and detention of any barge with respect to which the tax  is due under the Act, until the tax due in  respect  of the barge is paid.  Provision is also made for refund of tax in  certain  circumstances.  It will thus be seen  from  the relevant provisions of the Act and the Rules that the  State Government  has levied a tax on all barges used or kept  for use  in  the  Union Territory of Goa, Daman  and  Diu.   The Government  contends that since barges are boats, the  State Legislature  was  competent  to levy and collect  a  tax  on barges  under entry 58 in List II of the VIIth  Schedule  to the Constitution.      Counsel  for  the appellants contended  that  the  word ’boat’  cannot include a mechanically propelled  vessel  and since the definition of a ’barge’ in section 2(1) of the Act means  a mechanically propelled water craft used or  capable of being used as a means of transport of minerals, it cannot be  termed  as  a  boat to  attract  the  legislative  power conferred  by Entry 58 in List II of the VIIth Schedule  and hence  the  impugned  legislation  is  clearly  incompetent. Reference  was  also made to the definition  of  ’ship’  and ’vessel’ in sections 3(55) and 3(63) of the General  Clauses Act to butteress the submission that a boat cannot include a mechanically propelled vessel.                                                        215 We may reproduce the said two definitions at this state:          "3(55) - ’Ship’ shall include every description  of          vessel used in navigation not exclusively propelled          by oars".          "3(63)  -  "Vessel" shall include any ship  or  any          other description of vessel used in navigation."      It  was submitted that the position of the word  ’boat’ immediately  next to the word ’vessel’ in the definition  in section 3(63) is clearly indicative of the fact that  ’ship’ and   ’boat’  convey  two  different  meanings   since   the definition  of  ’ship’ does not include  vessel  exclusively propelled  by  oars.   from  these  two  definition  it  was contended  that  a ’boat’ is not a ’ship’ but  is  a  vessel exclusively  propelled  by  oars.   Thus  according  to  the learned counsel for the appellants a boat is a small  vessel not mechanically propelled but propelled exclusively by oars and Entry 58 in List II of the VIIth Schedule can be invoked

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for  levying  a tax on such a vessel and not  on  a  ’barge’ which, as the definition in section 2(1) of the Act conveys, is a mechanically propelled water craft.  This was the first limb  of  counsel’s  submission.  The  second  limb  of  his submission  was  based  on the scope and  ambit  of  Entries 24,25,  and 27 of List I and Entries 31 and 32 of List   III of  the VIIth Schedule.  Counsel submitted that  the  entire field  in  regard  to  mechanically  propelled  vessels  was covered by these entries and, therefore, the scope of  Entry 58 in List II of the VIIth Schedule was clearly confined  to vessels other than mechanically propelled vessels like small boats.  Therefore, counsel submitted that the word ’boat’ in Entry  58 in List II must receive a narrow meaning and  must be  limited to a vessel exclusively propelled by  oars.   In order  to  appreciate this contention based on  the  various entries in List I and List III above, it may be  appropriate to read those entries at this stage:      "List I          Entry  24  -  Shipping  and  navigation  on  inland          waterways,  declared  by Parliament by  law  to  be          national   waterways,   as   regards   mechanically          propelled  vessels;  the rule of the road  on  such          waterways.          Entry   25-  Maritime,  shipping  and   navigation,          including shipping and navigation on tidal  waters;          provision of education and                                                        216          training  for the mercantile marine and  regulation          of  such education and training provided  by  State          and other agencies.          Entry  27 - Ports declared by or under law made  by          Parliament  or  existing  law to  be  major  ports,          including their delimitation, and the  constitution          and powers of port authorities therein.          List III          Entry  31 - Ports other than those declared  by  or          under law made by Parliament or existing law to  be          major ports.          Entry  32  -  Shipping  and  navigation  on   inland          waterways   as   regards   mechanically   propelled          vessels,   and  the  rule  of  the  road  on   such          waterways, and the carriage of passengers and goods          on  inland waterways subject to the  provisions  of          List I with respect to national waterways."      Now  before we proceed to answer the contentions  urged by  the  learned  counsel  for the  appellants.  It  may  be advantag   to  notice the dictionary meanings of  the  words ’barge’,   ’boat’,   ’ship’  and  ’vessel’   used   in   the aforementioned legal provisions.          "ODHAM’S ENGLISH DICTIONARY           Barge   :   a   large   flat-bottomed   boat   for          transporting  heavy burdens on canals or rivers;  a          large  flat-bottomed  boat  used  in  loading   and          unloading  ships; a boat for the use of  the  chief          officers of a man-of-war; a large richly  decorated          boat  of  state  propelled  by  oars  and  used  on          ceremonial occasions:          a college house-boat.          Boat : a long symmetrically shaped hollow vessel or          receptacle  that  floats upon water,  is  propelled          either by oars, the action of wind on sails, or  by          mechanical  means, and which is used as a means  of          transport.          Ship : a large ocean-going vessel.          Vessel : a ship

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                                                      217          OXFORD ENGLISH DICTIONARY          Barge  : a flat-bottomed freight-boat  chiefly  for          canal and river navigation, either with or  without          sails; a rowing boat; esp. a ferry-boat.          Boat : a small open vessel in which to traverse the          surface of water, usually propelled by oars, though          sometimes by a sail.          Ship  :  a  large sea-going vessel  (opposed  to  a          boat);          Vessel  : any structure designed to float upon  and          traverse  the water for the carriage of persons  or          goods; a craft or ship or any kind, now usually one          larger  than a rowing-boat and often restricted  to          sea-going  craft  or those plying upon  the  larger          rivers or lakes.          BLACK’S LAW DICTIONARY          Barge : name originally applied to a small  sailing          vessel but after wards came into general use for  a          flat-bottomed  boat  used  for  carrying  goods  on          inland  waterways.   Barges are  usually  towed  or          fitted with some kind of engine.          Boat : a small open vessel, or water craft, usually          moved by oars or rowing.          Ship : a vessel of any kind employed in navigation.          In  a more restricted and more technical  sense,  a          three-masted vessel navigated with sails.          Vessel : a ship, brig, sloop or other craft used in          navigation.  The word in its broadest sense is more          comprehensive than ’ship’.  Any structure which  is          made  to  float  upon the water,  for  purposes  of          commerce  or war, whether impelled by wind,  steam,          or oars."      It is clear from aforementioned meanings that a ’barge’ is  a large flat-bottomed boat used for  transporting  heavy burdens  on canals and rivers but is not generally a  ocean- going  vessel.  It may or may not be fitted with  an  engine depending  on  its calibration.  All the  three  aforequoted dictionaries have described it as a flat-bottomed boat  used for  carrying goods or minerals on inland waterways.  It  is essentially  a  freight-boat  chiefly meant  for  canal  and river-navigation.  Barges can be of different                                                        218 sizes and may be propelled by oars, sails or engines.  They, however,  belong to the family of boats and not ships.   The learned  Judicial Commissioner has rightly concluded that  a ’barger’ is a flat-bottomed freight boat used on rivers  and canals  and  propelled by oars, sails or  engines.   Section 2(1)   of  the  Act  also  defines  it  as  a  water   craft mechanically propelled and used or capable of being used  as a means of transport of minerals.  Thus the legislature  has carved  out  only  mechanically  propelled  barges  for  tax purposes.    It  would,  therefore,  seem  that  the   State Legislature  was competent to tax it under entry 58 of  List II.      True  it  is  that the dictionaries  have  described  a ’boat’  as  a small open vessel usually propelled  by  oars, though  sometimes  by sail also.  According to  the  General Clauses  Act  a  ’ship’  shall include  a  vessel  of  every description used in navigation and not exclusively propelled by oars.  A vessel on the other hand is a ship or a boat  or any  other  description  of  vessel  used  for   navigation. Therefore,  a vessel which is exclusively propelled by  oars would not fall within the definition of a ship but would  be covered by the wider definition of a vessel.  From these two

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definitions  it  cannot  be  inferred  that  a  mechanically propelled  vessel is not a boat for the simple  reason  that the  definition of vessel is wide enough to include  a  ship which  is mechanically propelled.  Both the definitions  are inclusive definitions and the definition of vessels is  wide enough   to  include  boats  of  every   description,   both mechanically  propelled and those propelled  exclusively  by oars.  There is no warrant for the argument that because the word ’ship’ and the word ’boat’ are placed side by side, the latter  refers to only boats exclusively propelled  by  oars and  not  boats  fitted  with engines.   To  place  such  an interpretation would lead to the absurd situation of a small boat  propelled by said being called a ship.  It would  mean that a boat exclusively propelled by oars would cease to  be a  boat the moment it is fitted with a sail.  The  definition of  vessel, in our view, is wide enough to cover both  boats propelled  exclusively by oars as well as boats fitted  with engines.   Nor can any distinction be drawn on the basis  of the  size  of the vessel.  Merely because the  Act  and  the Rules cover barges ranging from less than 100 tonnes to  350 tonnes  and above, it cannot be said that such  large  sized vessels  which  are mechanically propelled cannot  be  calld boats.   The  definition of a ’barge’  in  the  dictionaries aforementioned  clearly show that barges  are  flat-bottomed boats  meant  for carrying goods on inland  waters  and  are usually  fitted  with  engines.   Since  hey  are  used  for transporting  heavy  burdens on canals and rivers  -  inland waters - and loading and unloading ships which are  anchored away as they cannot enter shallow                                                        219 waters,  they (barges) are bound to be heavy  vessels  which can take the load.  For that reason they do not  cease to be flat- bottomed boats and in ordinary parlance they cannot be described as ships.  We are, therefore not impressed by  the submission  that  Entry 58 in List II must  be  confined  to boats which are exclusively propelled by oars. We think  the learned  Judicial  Commissioner was perfectly  justified  in rejecting the submission and we respectfully agree with  his of reasoning.      This  very submission was sought to be  supported  with reference  to  the entries in List I and List  III  set  out hereinabove.  Now it must be remembered at the out set  that Entry 58 in List II deals with taxes on boats and we see  no warrant to limit the same to boats propelled exclusively  be oars.   It is settled law that legislative entries  must  be interpreted  widely unless the language of the entry or  the context requires that it be given a narrow meaning.  Neither the language of Entry 58 in List II nor the context in which the  word  ’boats’ is used therein calls for  confining  its scope  to boats exclusively propelled by oars.  We  also  do not  think  that the language of Entries  24, 25 and  27  in List  I  and Entries 31 and 32 in List III would  justify  a narrow meaning to be given to the word ’boats’ in the  Entry 58  of List II.  The entries relied upon have nothing to  do with the subject of levy of tax on boats.  Entry 24 in  List I  deals  with  the subject of shipping  and  navigation  on inland waterways declared to be national waterways, the rule of  the road as such waterways and Entry 25 in List I  deals with  maritime  shipping  and navigation.  The  use  of  the expression  ’mechanically  propelled vessels’  in  Entry  24 cannot restrict the ambit of Entry 58 in List II to  vessels exclusively propelled by oars.  On the contrary it restricts the scope of Entry 24 itself and confines its application to mechanically propelled vessels.  Both the Entries 24 and  25 of  List  I and Entry 32 in List III  concern  shipping  and

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navigation and have nothing to do with the question of  levy of tax on boats.  Entry 27 in List I deals with Ports and so does Entry 31 In List III and it is difficult to  appreciate how it can legitimately be contended that these entries  cut down  the  scope of Entry 58 in List II.  The  entries  from List  I and III relied upon operate in their own fields  and do not entrench upon the subject covered by Entry 58 in List II.  The learned Judicial Commissioner was, therefore, right in concluding that boats of all description can be taxed  by the  State Legislature by reason of the power  conferred  by Entry 58 in List II of the VIIthe Schedule.      For  the above reasons we are satisfied that  the  view taken by the                                                        220 learned  Judicial Commissioner is correct and does not  call for  interference. Therefore, these appeals  on  certificate issued  under Article 133(1) of the Constitution must  fail. We,  therefore, dismiss them but having regard to the  facts and  circumstances  of the case of each matter we  think  it would  be  advisable to direct each party to  bear  its  own costs. N.P.V.                                     Appeals dismissed.                                                   221