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2018 (5) TMI 717 - HC - VAT and Sales TaxRelease of detained goods - sale of sugar - levy of penalty - rate of tax - respondent-dealer filed an appeal before the Appellate Assistant Commissioner (CT), on the ground that the consignment contained only sugar powder and therefore, it is an exempted commodity, falling under Entry 5 of the Third Schedule to the TNGST Act, 1959. Held that: - Sugar is defined in Item No.8 of the First Schedule to the Central Excises and Salt Act, 1944 (Act 1 of 1944), which means any form of sugar containing more than 90 per cent of sucrose. Test report states that the sample sugar contained 96.3% of sucrose. Section states any form, which includes powder form also. When sugar is made into powder, it does not change the "substantial identity and character" or "essential nature" and it does not lose their natural form. Mere change into powdered form, does not change the "essential nature" of the commodity. In Rasoi Products v. Commercial Tax Officer [1980 (8) TMI 191 - CALCUTTA HIGH COURT], the Calcutta High Court held that when pepper, black pepper, white pepper and turmeric are powdered, there is no substantial change in the commodities and that the powders are not again liable to sales tax. Revision dismissed - decided against Revenue.
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