TMI Blog1978 (8) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... he State of Assam. He is a registered dealer within the meaning of the Assam Finance (Sales Tax) Act, 1956 (hereinafter to be referred to as the Act) and the Rules framed thereunder. His case is that he had to deposit under protest a sum of Rs. 49,048.97 up to the period ending 31st March, 1970, as sales tax on the onion imported by him from outside the State of Assam. The contention of the petitioner is that, in the first place, "onion" is not a bulb and, at any rate, onion grown within the territory of Assam cannot be subjected to sales tax as it is neither made nor manufactured nor processed and, therefore, the levy of sales tax on the onion imported by the petitioner from outside the State is discriminatory and liable to be struck down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word "bulb". Now, we may come to the second branch of the learned counsel's argument that the levy of sales tax on the imported onion is bad as it is discriminatory, the onion grown in Assam not being subjected to sales tax. Before examining the legal aspect of the case, we consider it necessary to point out here and now that in the reply filed by the State of Assam, it was asserted in unequivocal terms in para 3 that "onion produced in the State of Assam is equally taxable with onion imported from outside the State of Assam". This factual position alleged in the reply to the petition has not been controverted on behalf of the petitioner and, therefore, we have no alternative but to accept that as a matter of fact onion produced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so, however, as not to discriminate between goods so imported and goods so manufactured or produced. In support of this contention, the learned counsel has relied on State of Madhya Pradesh v. Bhailal Bhai[1964] 15 S.T.C. 450 (S.C.); A.I.R. 1964 S.C. 1006., Firm A.T.B. Mehtab Majid and Company v. State of Madras[1963] 14 S.T.C. 355 (S.C.); A.I.R. 1963 S.C. 928. and State of Rajasthan v. Ghasiram Mangilal[1969] 2 S.C.C. 710. On the other hand, Mr. Goswami, learned counsel for the State of Assam, contends that there is no discrimination between onion imported from outside and onion grown in the State of Assam inasmuch as both are subjected to levy of sales tax. The argument in this connection has centred round the definition of the word "pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aves sprout on the surface of the earth. It is removed along with the root, the leaves are dried up, and the main part which may be called bulb is exposed in the sunshine and after the leaves have dried up and have been removed from the bulb, the bulb, i. e., the edible round article is taken to the market for sale. From this it will be clear that the commodity is subjected to a treatment or process. It, does not remain in the same condition in which it was when embedded to the earth or as initially harvested. Looked at from this angle, we are inclined to hold that onion is processed and that is why the onion grown in the State of Assam has been rightly subjected to a levy of sales tax by the Government. In this connection, reference may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in this connection that even though the petitioner is a dealer registered under the Act, still he would not be liable to pay sales tax on the sale of onion imported from outside on the ground that the onion produced in the State of Assam does not attract the levy of tax is, in our opinion, unsustainable. We are, therefore, of the opinion that the levy of sales tax on the onion imported by the petitioner from outside the State of Assam is justified and cannot be struck down. In view of the conclusion to which we have come, the question of refund of the tax already paid by the petitioner does not arise and we consider it wholly unnecessary to refer to the cases relied upon by the learned counsel on both the sides on the question wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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