1961 (6) TMI 20 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of whether coriander, ajwan, and sompu qualify as oil seeds under the Andhra Pradesh General Sales Tax Act.

Analysis:
The High Court of Andhra Pradesh addressed the issue of whether coriander, ajwan, and sompu fall within the definition of oil seeds under the Andhra Pradesh General Sales Tax Act. The court examined the legislative intent behind the definition of oil seeds in the Act. The Act defines oil seeds as seeds yielding non-volatile oils used for various purposes such as consumption, industry, varnishes, soaps, lubrication, medicines, perfumes, and cosmetics. The court emphasized that the key consideration is whether these seeds are commonly known as oil seeds in the country, not just whether oil can be extracted from them. The court highlighted that the legislative intent was to tax the turnover of seeds that are commonly recognized as oil seeds in common parlance, excluding seeds that require a scientific process to extract oil. The court considered expert opinions from the Director of the National Chemical Laboratory and the Central Food Technological Research Institute, which indicated that the oil content in coriander seeds is minimal and requires a specialized process for extraction. The court concluded that coriander, ajwan, and sompu are primarily used as spices and are not commonly recognized as oil seeds in the country. Additionally, there was no evidence to suggest that oil extracted from these seeds is commercially or industrially used. Therefore, the court held that these commodities do not fall within the legislative definition of oil seeds and dismissed the revision petition with costs.