TMI Blog1980 (7) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... section 15 imposes conditions and restrictions subject to which the State Government can impose tax on the internal trade in those goods, the main condition being that no State shall have a system of levy other than a single point levy, at a single stage to be specified by law. Section 14 was amended by Central Act No. 103 of 1976 and in the items included in section 14, item (vi-a) was introduced. Item (vi-a) reads thus: "(vi-a) pulses, that is to say,- (i) gram or gulab gram (Cicerarietinum L.); (ii) tur or arhar (Cajanus cajan); (iii) moong or green gram (Phaseolus aureus)." Section 15 of the Central Sales Tax Act reads as follows: "Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 14 and 15 of the Central Sales Tax Act, makes it clear that in the case of declared goods as enumerated in section 14, the State shall not levy more than 4 per cent tax on the sale or purchase price. Further such tax shall not be levied at more than one stage. Section 15(d) as amended by amending Act No. 103 of 1976 makes it clear that the pulses catalogued in clause (vi-a) of section 14 whether whole or separated and whether with or without husk, shall be treated as a single commodity for the purpose of levy of tax under the Central Sales Tax Act. It has to be noted here, that for the first time pulses were brought under the category of declared goods in section 14 of the Central Sales Tax Act. After the inclusion of pulses in the list ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rate and only at the point specified against each in the Second Schedule on the turnover in such goods in each year, whatever be the quantum of turnover in that year. This section has been enacted in compliance with section 15 of the Central Sales Tax Act. Under this section sales tax is payable on declared goods only at the rate and only at the point specified against each in the Second Schedule on the turnover in such goods. The Second Schedule enumerates declared goods in respect of which a single point tax only is leviable under section 4. By Tamil Nadu Act No. 40 of 1976 the Tamil Nadu General Sales Tax Act, 1959, was amended and item 6-A was introduced containing seven items. Item 6-A reads thus: "Pulses, that is to say, (i) gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excludes pulses and grams included in item 6-A of the Second Schedule. It has already been seen that item 6-A of the Second Schedule of the State Act and item (vi-a) of section 14 of the Central Act are identical. The point in controversy between the assessee and the department is whether fried gram comes within the meaning of pulses or grams in item (vi-a) of section 14 of the Central Act and item 6-A of the Second Schedule to the State Act. If fried or parched grams fall within item (vi-a) of section 14 of the Central Act and item 6-A of the Second Schedule to the State Act, then they will stand excluded from entry 80(a) of the First Schedule to the State Act. Further, in respect of the said gram the State Government will be entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new commercial commodity comes into existence. In Kapildeoram Baijnath Prosad v. J.K. Das [1954] 5 STC 365 it has been held that as long as a thing continued to be cereal and retained its form as such although it may have undergone some simple processes of boiling or parching, it could not be held that it was not to be covered by the exemption. Chira and muri do not cease to be cereals merely because rice or paddy had undergone the process of being flattened and fried in assuming the form of chira and muri. In Tungabhadra Industries Limited, Kurnool v. Commercial Tax Officer, Kurnool [1960] 11 STC 827 (SC) the Supreme Court was of the view that "hydrogenated groundnut oil (commonly known as vanaspati) remained groundnut oil within the mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my finding that fried gram or parched gram comes within the meaning of pulses and grams included in item (vi-a) of section 14 of the Central Act and item 6-A of the Second Schedule to the State Act and constitutes declared goods, it will not be open to the State Government to levy sales tax in excess of 4 per cent as provided for under section 15(a) of the Central Sales Tax Act. In the result, all the writ petitions succeed and writs of prohibition will issue to the second respondent prohibiting from collecting the additional sales tax over and above 4 per cent in respect of sales turnover on fried gram, from the petitioner in each of the petitions. The writ petitions are allowed and under the circumstances without costs. Writ petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
