TMI Blog1961 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... n of coconut oil, which the respondent demanded of him under the provisions of section 11 of the Madras Commercial Crops Markets Act. That section was first amended by Madras Act XXXIII of 1955 and was further amended by Mysore Act 20 of 1958. In its present form that section reads: "(1) Notwithstanding anything contained in the general sales tax law for the time being in force, the market committee shall levy a cess by way of sales tax on any commercial crop bought or sold in the notified area at the rates specified hereunder: I. ARECANUT 1.. For every thousand raw undried arecanuts Six pies or three in husk or part thereof naye paise. 2.. For every hundredweight of cured arecanuts Two and a half (including whole dry nuts and dried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Crops Markets Act. In order to understand the contention, it would be necessary to set out the provisions of sections 14 and 15 of the Central Sales Tax Act. Those sections read: "14. Certain goods to be of special importance in inter-State trade or commerce.-It is hereby declared that the following goods are of special importance in inter-State trade or commerce: ............... (vi) oil-seeds, that is to say, seeds yielding non-volatile oils used for human consumption, or in industry, or in the manufacture of varnishes, soaps and the like, or in lubrication, and volatile oils used chiefly in medicines, perfumes, cosmetics and the like." " 15. Restrictions and conditions in regard to tax on sale or purchase of declared goods withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax on the sale or purchase of oil-seeds are those contained in section 15 of the Central Sales Tax Act. The restriction which is of relevance for the purpose of this case is that the sales tax which may be imposed in respect of the sale or purchase of oil-seeds shall not exceed two per cent. of the sale or purchase price. It was, therefore, not competent for the State to demand a tax in respect of the sale or purchase of oil-seeds in excess of two per cent. of the sale or purchase price thereof. That, is the effect of sections 14 and 15 of the Central Sales Tax Act, read with Article 286(3) of the Constitution. Under section 5(4) of the Mysore Sales Tax Act, read with Schedule IV to that Act, the State of Mysore imposed a tax in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is what is extracted both from coconut and copra although coconut oil is generally extracted from dried copra. The question is whether they are seeds from which oil is so extracted. The dictionary meaning of the word "seed" is that it is a flowering plant's unit of reproduction or germ capable of developing into another such plant. It is common knowledge and that fact is also admitted by the learned Government Pleader that the unit of reproduction of the coconut plant which is admittedly a flowering plant, is the coconut with its shell and husk and that it is such coconut when planted that becomes capable of developing into another coconut plant. That being so, it is clear that a coconut is a seed and since oil can be extracted from a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Mysore Sales Tax Act, 1957, by the Legislature of the New State of Mysore. This amendment was made in the year 1958. Serial No. 5 of that Schedule, as it stood before its amendment, described oil-seeds as seeds yielding non-volatile oils used for human consumption, or in industry, or in the manufacture of varnishes, soaps and the like, or in lubrication, and volatile oils used chiefly in medicines, perfumes, cosmetics, and the like, in respect of which sales tax could be imposed in the manner specified in section 5(4) of the Act. In that part of Schedule IV, coconut and copra had not been included in the first instance when the Mysore Sales Tax Act was enacted. On the contrary, they were included in Schedule III to that Act. But when Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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