TMI Blog2002 (10) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner had sold cardamom grown in their own estate and claimed exemption in respect of the sales turnover of the "cardamom" under section 2(r) of the TNGST Act, 1959. The Assessing Officer had rejected the claim of exemption on the ground that the agricultural produce produced by the petitioner had undergone the process of curing with much care in the curing house by heat treatment by maintaining a particular degree of centigrade for several hours so as to preserve and also to get good shining and flavour to fetch a good price in the market. The curing process with which agricultural produce was subjected to is not "mere drying, cleaning or sorting" so as to enable the petitioner to claim exemption under section 2(r). The process of curing undergone by the agricultural produce "cardamom" under the careful supervision of expert curing house in-charge was more than the minimum process as contemplated under section 2(r) of the TNGST Act and ultimately the Assessing Officer held that the exemption so contemplated under section 2(r) was not applicable to the "cardamom" so cured by the petitioner and levied the tax at the rate of five percent. That order was taken on appeal to the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writ petition. 3.. Before us, the learned counsel Mr. K.J. Chandran very strenuously argued that the sales turnover of "cardamom" grown in the estate of the petitioner should not be included in the taxable turnover of the petitioner as per Explanation (1) of section 2(r) of the TNGST Act. While drying the "cardamom", only the minimum process was done, that too, for the purpose of marketing it, thereby the dried "cardamom" had not ceased to be an agricultural produce and hence the exemption as provided under Explanation (1) to section 2(r) is very much available to the petitioner. The finding of the authorities that after drying the "cardamom", it ceased to be an agricultural produce is not in accordance with law. To sustain his argument, the learned counsel relied on the following decisions: (1) Commissioner of Sales Tax, Lucknow v. D.S. Bist reported in [1979] 44 STC 392 (SC). (2) Deputy Commissioner of Agricultural Income-tax and Sales Tax v. A.P. Raman reported in [1960] 11 STC 263 (Ker) and (3) Rayavarapu Mrityanjaya Rao v. State of Andhra Pradesh reported in [1967] 20 STC 417 (AP). 4.. On the other hand, the learned Special Government Pleader Mr. Ayyasamy has resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inferior courts or Tribunals: these are cases where orders are passed by inferior courts or Tribunals without jurisdiction, or is in excess of it, or as a result of failure to exercise jurisdictions. A writ can similarly be issued where in exercise of jurisdiction conferred on it, the court or Tribunal acts illegally or improperly, as for instance, it decides a question without giving an opportunity to be heard to the party affected by the order, or where the procedure adopted in dealing with the dispute is opposed to principles of natural justice. There is, however, no doubt that the jurisdiction to issue a writ of certiorari is a supervisory jurisdiction and the court exercising it is not entitled to act as an appellate court. This limitation necessarily means that findings of fact reached by the inferior court or Tribunal as a result of the appreciation of evidence cannot be reopened or questioned in writ proceedings. An error of law which is apparent on the face of the record can be corrected by a writ, but not an error of fact, however, grave it may appear to be. In regard to a finding of fact recorded by the Tribunal, a writ of certiorari can be issued if it is shown tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t only dry, clean and sort out, but cure the grown cardamom in a curing house under the careful supervision of an expert curing house in-charge. Thus, the cardamom undergoes processing though not manufacturing, and then only it would attain the stage of marketability. As such it ceased to be an agricultural produce." The said finding has been confirmed by the first and second Appellate Authorities and by the revisional authority, the Special Tribunal also. No evidence, much less, any material evidence had been produced before the statutory authorities below to contend that the processing of curing of "cardamom" is just as that of merely drying the "cardamom". Hence, on the materials made available by the petitioner, the finding of fact has been arrived at by the authorities to the effect that the process involved in curing the "cardamom" is more than mere drying. The petitioner had not taken any pain to produce before the authorities or made available before the authorities what are all the processes which the goods underwent while curing the same. Hence, we are of the opinion that in the absence of any material made available before the authorities to prove that the process of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hysical, chemical or other process for being made fit for consumption, save mere cleaning, grading, sorting or drying." As per the Explanation, in order to get exemption under section 2(r) of the TNGST Act for agricultural produce, such produce has not been subjected to any physical, chemical or other process for being made it fit for consumption except mere cleaning, grading, sorting or drying. Now we will have to find out whether curing process to which the goods are subjected to is nothing but mere drying. 10.. As seen from the write up as to the process of "curing", hot air is passed through pipes thereby room temperature was maintained at certain degree of temperature. The method of maintaining the temperature has not been elaborated in the write up. It is common knowledge that over heating or giving a temperature less than the required one would result in spoiling the entire agricultural produce. Hence, the finding of fact by the Assessing Authority that the petitioner have cured the "cardamom" with much care in a particular degree of centigrade not only getting the "cardamom" dried, but also getting the "cardamom" shining and keeping the aroma and flavour to a certain st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wild plants; but most are cultivated in India, Sri Lanka, and Guatemala. Leafy shoots arise 5 to 20 feet (1 to 6 metres) from the branching rootstock. Flowering shoots, about three feet (one metre) long, may be upright or sprawling; each bears numerous flowers about two inches (five centimetres) in diameter with greenish petals and a purple-veined white lip. The whole fruit, 0.3 to 0.6 inch (8 to 16 millimetres) is a green, three-sided oval capsule containing 15 to 20 dark, reddish-brown to brownish-black, hard, angular seeds. They are picked or clipped from the stems just before maturity, cleansed, and dried in the sun or in a heated curing chamber. Cardamom may be bleached to a creamy white colour in the fumes of burning sulfur. After curing and drying, the small stems of the capsules are removed by winnowing. Decorticated cardamom consists of husked dried seeds....." From the above, it is clear that cardamom is generally considered as a ground dried fruit. In order to make it consumable, cardamom, which are picked or clipped from the stems just before maturity are cleansed, and dried in the sun or in a heated curing chamber. Cardamom may be bleached to a creamy white colou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44 STC 392 (SC). The question involved in that case was, whether the tea-leaves sold by the assessee were agricultural produce grown by himself and the sale were therefore not liable to tax under the proviso to section 2(i) of the U.P. Sales Tax Act. The question involved in the present case is totally different, in the sense, that whether the process of curing to which the agricultural produce are subjected to would take away the exemption granted to the agricultural produce under Explanation (1) to section 2(r). 15.. The other decision relied by the learned counsel for the petitioner is Deputy Commissioner of Agricultural Income-tax and Sales Tax v. A.P. Raman reported in [1960] 11 STC 263 (Ker). The question involved in that case was, whether a particular process alters the character of agricultural or horticultural produce to that of manufactured article, wherein the general principle which could be safely laid down to the effect that the minimum process ordinarily employed by an agriculturist to make the produce marketable cannot be said that the produce ceased to be an agricultural or horticultural produce. But in the present case, the Explanation (1) to section 2(r) clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Legislature is to be gathered from the language used. While doing so, what has been said in the statute as also what has not been said has to be noted. The construction which requires for its support, addition or substitution of words or which results in rejection of words has to be avoided [vide JT 2002 (3) SC 551 (Grasim Industries Ltd. v. Collector of Customs)]. 20.. The meaning of the word "drying" has to take its colour from the other words with which it keeps company. The process of mere cleaning, grading and sorting doesn't require any specialised or skilful process as that of "curing". 21.. In view of the above discussion, we are of the view that there is absolutely no material so as to interfere with the concurrent finding of fact that the activity of "curing" of agricultural produce "cardamom" cannot be considered as mere drying, but it could be considered as "not only drying, but also preserving the aroma and flavour and also giving shining". In such circumstances, the saving clause of mere cleaning, grading, sorting and drying in Explanation (1) to section 2(r) of the TNGST Act would not come to the rescue of the petitioner so as to conclude that the fresh green ..... X X X X Extracts X X X X X X X X Extracts X X X X
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