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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

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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

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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.

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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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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.

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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

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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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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

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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.

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