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TMI Blog1965 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... to their turnover of Rs. 24,538.40 representing the sale of zarda which is an Urdu word for "chewing tobacco", they were subjected to sales tax for the assessment year 1961-62, i.e., for the period from 1st April, 1961 to 31st March, 1962. The assessee objected to the levy of tax on zarda on the ground that zarda is a tobacco product and it falls under item 7 of Schedule 5 of the Act. The Commercial Tax Officer, however, did not accept that contention. The matter was carried in appeal to the Assistant Commissioner of Commercial Taxes who held that as zarda manufactured by the assessee had not suffered additional excise duty, the levy of sales tax was justified. He accordingly dismissed the appeal. The assessees then took up the matter to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bacco and all its products" are exempted from tax under section 8 of the said Act. The amendment came into effect from 1st April, 1958, in accordance with G.O. Ms. No. 566, Revenue, dated 28th March, 1958. Admittedly subsequent to it no rule was made restricting the operation of the exemption or imposing any limitation on the relief granted under the Act. So that if tobacco is considered in its dictionary meaning, there could be no difficulty in holding that zarda being a variety of chewing tobacco, will fall within the exemption. It is to be noted that tobacco has not been defined under the Act nor there is any indication to show that tobacco has to be construed in accordance with the definition given under any other enactment. Accepting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reference to the facts which led to the notification and the subsequent amendment of the Act; suffice to say that by the Additional Duties of Excise (Goods of Special Importance) Act, 1957, the Union Government imposed additional duties of excise on textile, sugar and tobacco in replacement of sales tax levied by the various States. The Act came into force on 24th December, 1957. To avoid double taxation, the State Government in exercise of its powers under section 9 issued a notification exempting from payment of tax all goods in respect of which additional duties of excise are leviable by the Central Government with effect from 24th December, 1957. Later on, the Act itself was amended by addition of textile, sugar and tobacco and all it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty was not imposed in accordance with the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The notification referred to above did not provide nor was it laid down in Krishnaiah Setty & Sons v. Deputy Commercial Tax Officer, Hindupur[1963] 14 S.T.C. 1., that exemption could only be claimed in respect of goods on which additional duty of excise has been levied. In fact, while construing the effect of the proviso to the notification mentioned above, the Supreme Court in Innamuri Gopalam & Others v. State of Andhra Pradesh[1963] 14 S.T.C. 742., came to a definite conclusion that as the proviso could not apply to cases where additional duty of excise was not leviable, the operation of the exemption was unaffected by the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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