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TMI Blog1966 (9) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... s requested the Deputy Commissioner of Sales Tax (Appeals), Gujarat State, Ahmedabad, to determine under section 52(1)(e) of the Bombay Sales Tax Act, 1959, whether any tax was payable in respect of the sales of "patasa", "sakar ", "bura sugar", "harda" and "alchidana". Along with their application, they sent two copies of bills Nos. 46, 85 and 92 dated respectively 2nd May, 1960, 1st July, 1960, and 9th July, 1960. The Deputy Commissioner of Sales Tax held that the sale of "bura sugar" was exempt from tax as the item was covered by entry 47 of Schedule A to the Bombay Sales Tax Act, 1959, whilst the sales of other articles were covered by entry 22 of Schedule E to the Act and tax was payable on them. By a further order dated 3rd October, 1960, the Deputy Commissioner rectified the earlier order and held that the other articles were covered, not by entry 22 of Schedule E, but by entry 31 of Schedule C to the Act. The Commissioner of Sales Tax in revision, by his order dated 24th October, 1960, held that "sakar" (sugar-candy) was a form of sugar and was covered by the definition of sugar in entry 47 of Schedule A and was also exempt from tax. He held that articles like "patasa", "h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and the fact that they are distributed on festive occasions will not make them anything else than sugar on that account. It may be noted that it is possible to convert any of these articles into other articles by dissolving them in water and subjecting the solution to an appropriate process. They can also be put to the same use to which sugar-candy or bura sugar can be put." Section 5(1) of the Bombay Sales Tax Act, 1959, provides as under: "Notwithstanding anything in this Act, but subject to the conditions or exceptions (if any) set out against each of the goods specified in column 3 of Schedule A, no tax shall be payable on the sales or purchases of any goods specified in that Schedule." Entry 47 in Schedule A runs as under: "Sugar as defined in Item No. 8 of the First Schedule to the Central Excises and Salt Act, 1944." Sugar as defined in item No. 8 of the First Schedule to the Central Excises and Salt Act, 1944, is thus exempt from payment of tax under the Sales Tax Act, 1959. Item No. 8 of the First Schedule to the Central Excises and Salt Act, 1944, defines sugar as under: "Sugar means any form of sugar containing more than 90 per cent. of sucrose." Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of these words in the Central Excises and Salt Act, 1944, we are dealing with the use of the words in an enactment intended for the levy of excise duty. The Legislature, by using the words "any form of sugar" has intended to cover sugar of any variety in whatever form it may be found and by whatever name it may be called. Mr. Nanavaty the learned Advocate on behalf of the opponents, drew our attention to a decision of the Assam High Court in the case of Kapildeoram Baijnath Prosad v. J.K. Das and Others 1954] 5 S.T.C. 365., where the Court had to consider whether "chira" and "muri" could be said to be covered by the words "all cereals and pulses including all forms of rice ". In that case, the Advocate-General of the Assam High Court contended that the word "forms" used in connection with rice should be confined to mere varieties of rice but the said contention did not find favour with the Court. "Chira" is parched beaten rice. It involves the process of boiling paddy, its dehydration, frying and flattening. "Muri" involves the process of soaking, boiling and dehydration of paddy and the removal of husks. As a result of these processes the article rice becomes edible and can be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 47, does not use the word sugar simpliciter. It has in terms stated that what is covered is sugar as defined in item No. 8 of the First Schedule to the Central Excises and Salt Act, 1944. When we turn to the definition appearing in the aforesaid item No. 8 that definition is not intended merely to cover sugar as known in common parlance. As stated by us earlier, it is intended to cover all forms of sugar. It is further intended to cover only sugar in any form which contains more than 90 per cent. of sucrose. A definition which refers to the chemical contents of an article cannot be said to be a definition which is intended to cover the article as understood in common parlance. It is with a view to give a meaning different from that which the article bears in common parlance that a special definition has been given, and it is not possible for us to interpret the words used in entry 47 as only covering the term sugar as used in common parlance. A reference has been made to a decision of the Supreme Court reported in Tungabhadra Industries Ltd., Kurnool v. Commercial Tax Officer, Kurnool [1960] 11 S.T.C. 827; A.I.R. 1961 S.C. 412. In that case, it was held that when raw groundnut oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les Tax Act to the Deputy Commissioner of Sales Tax to determine whether any tax was payable on the sales of patasa, sakar, bura sugar, harda and alchidana effected by them under their bills No. 46 dated 2nd May, 1960, No. 85 dated 1st July, 1960, and No. 92 dated 9th July, 1960. The Deputy Commissioner of Sales Tax held that the sale of "bura sugar" was exempt from tax as the item was covered by entry 47 of Schedule A to the Bombay Sales Tax Act, whilst the sales of other articles were covered by entry 22 of Schedule E to the Act and tax was payable on them as such. By a further order dated the 3rd October, 1960, the Deputy Commissioner rectified the earlier order and held that the other articles were covered not by entry 22 of Schedule E, but by entry 31 of Schedule C to the Act. The Com- missioner of Sales Tax, however, revised the order of the Deputy Commissioner of Sales Tax and by his order dated 24th October, 1960, held that sakar (sugar-candy) was a form of sugar and sales thereof were exempt from tax under entry 47 of Schedule A to the Bombay Sales Tax Act. He further held that articles like patasa, harda and alchidana were products of sugar and not sugar as such in any fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to sales tax or purchase tax and the rates of tax. S.No. Description of goods Rate of sales tax Rate purchase tax of 31 Sweets and sweetmeats (including shrikhand, basundi and doodhpak) except when sold in sealed containers of weight not exceeding five seers in each containers. Five naye paise in the rupee. Five naye paise in the rupee." The Tribunal said that alchidana or small lumps of sugar referred to by them did not contain any edible articles such as seeds of cardamom or groundnuts but were pure lumps of sugar. In the course of its judgment, the Tribunal observed as follows:- "If the chemical composition of the articles is to be taken as a guide in interpreting the entry 47 there is no doubt that patasa, harda and the alchidana are merely different forms of sugar as defined by the Central Excises and Salt Act, 1944. We were informed that a small portion of hydrogen sulphide is passed through the sugar solution for bleaching purposes after which patasas are prepared by splashing the solution on a piece of wood which converts the sugar into amorphous sugar; the hardas are prepared by pouring the solution into moulds which is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accept this argument as correct. If the Legislature had intended to refer to "any variety of sugar" there is no reason why it should not have used that expression in item No. 47. It is significant that item No. 14 which relates to tea states as follows: "'Tea' includes all varieties of the product known commercially as tea and also includes green tea." Item 16 which relates to soap provides that soap means "all varieties of the product known commercially as soap". But in item No. 47 the Legislature has used the words "any form of sugar" and not "any variety of sugar". We are accordingly of opinion that the word "sugar" in item No. 47 is intended to include within its ambit all forms of sugar, that is to say sugar of any shape or texture, colour or density and by whatever name it is called. The qualifying words are that it must contain more than 90 per cent. of sucrose. We hold that the view taken by the High Court is correct and the argument of Mr. Bindra on behalf of the appellant must be overruled. In the course of his argument reference was made by Mr. Bindra to the decision of Henrietta Louise Lutz v. Daniel Magone, Collector, etc. 153 U.S. 105; 38 L.Ed. 651., in which it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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