TMI Blog1989 (2) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... he State Act" for short). 2.. The facts of the case, in brief, are as follows: The assessee is a general merchant. Among various other commodities in which he deals, lisa sugar is one of them. According to the petitioner, it is only an allotropy of sugar. Sugar is powdered by a mechanical process and thereafter a small percentage of glucose and water is added to it and dried. It contains 99 per cent of sucrose. Thus, lisa sugar is only -powdered soft sugar and in vernacular it is called "boora sakre". In the assessment proceedings for the period between 25th October, 1984 and 12th November, 1985, the turnover of the assessee in respect of lisa sugar was Rs. 5,18,208.17 and also Rs. 2,30,279.00 for the period ending 31st March, 1985 and 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ...... (viii) sugar, as defined in item No. 1 of the First Schedule to the Central Excises and Salt Act, 1944 (Central Act 1 of 1944)." The definition of the expression "sugar" contained under tariff item No. 1 of the First Schedule to the Central Excises and Salt Act, reads: " 'sugar' means any form of sugar in which the sucrose content, if expressed as a percentage of the material dried to constant weight at 105 C, would be more than 90." The learned counsel submitted that lisa sugar contains 99 per cent sucrose (dry basis) and answers the description of the word "sugar" as contained in the Central Excise Act and therefore it has to be treated as "declared goods" under section 14(viii) of the C.S.T. Act. If it is so, then the rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the State Act. The lower authorities had exempted lisa sugar from tax as "sugar" was an exempted item under entry 31B of the Fifth Schedule and in their view lisa sugar was also sugar and, therefore, exempt from tax. The Commissioner reversed the order in revision and held that lisa sugar was not an exempted item under entry 31B of the Fifth Schedule to the State Act. That decision was in appeal before this Court. Entry 31B of the Fifth Schedule to the State Act, reads: "31B. Sugar other than sugar candy, confectionery and the like." (Underlining* by us) The contention that lisa sugar was exempted under entry 31B of the Fifth Schedule was rejected on the ground that having regard to the clear wording of item 31B aforesaid what was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing authority has to decide a question of fact, namely, whether lisa sugar is sugar as defined in the Central Excises and Salt Act. If on that question it comes to the conclusion that lisa sugar is "sugar", it would be a "declared goods" under section 14(viii) of the C.S.T. Act and would not be liable to tax under section 5(1) of the State Act. If only the conclusion is that lisa sugar is not "declared goods", then only its turnover would be liable to tax under section 5(1) of the State Act. 7.. As stated earlier, the assessing authority proceeded on the basis that in view of the decision of this Court in the case of Dilip Kumar Peppermints [1986] 63 STC 143, the contention of the assessee that it was a declared goods, had to be rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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