TMI Blog2007 (5) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... k coming under entry 23 of the Third Schedule to the Kerala General Sales Tax Act, 1963. The assessing authority while concluding the assessment for the assessment year 2000-01 has levied the tax at 12 per cent treating Amul Tazza Milk as a milk product as such an item falling under entry 92 of the First Schedule to the Act. The assessee being aggrieved by the said finding and conclusion reached by the assessing authority had approached the higher forum by filing an appeal. The appellate authority has concurred with the findings and conclusion reached by the assessing authority. Thereafter the assessee has carried the matter by way of second appeal before the Kerala Sales Tax Appellate Tribunal. The Tribunal by order dated September 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... common parlance and the functional character of the item. Aggrieved by the aforesaid order passed by the Tribunal, the assessee has come before us in this revision petition. The question of law raised for our consideration and decision is whether the Tribunal is justified in classifying Amul Tazza Milk as not pasteurised milk after admitting that the process adopted by the assessee is only pasteurisation? Learned counsel for the revision petitioner would submit that the Tazza milk sold by the assessee would fall under entry 23 of the Third Schedule to the Kerala General Sales Tax Act, 1963 ( the Act , for short) and, therefore, is exempt from payment of tax under the Act. It is further contended that merely because vitamins A and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, the first question that requires to be answered is what is a milk product. In our view, when milk is processed a commodity which is entirely different from milk and which cannot be identified as such may be obtained and the commodity so obtained can be described as a milk product . Its composition and use will be basically different from that of the milk obtained in the natural form. In the alternative, it can be said, whenever a commodity is subjected to a process and some change is brought about in its constitution, it can be said that the resultant commodity is the product of the original commodity. The entry is both inclusive and exclusive. It includes milk powder, baby food, ghee, cheese and butter. The word includes is oft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mperature pasteurisation. It also keeps the milk for long duration when compared to fresh milk. Pasteurisation refers to the process of heating every particle of milk to at least 63 C for 15 seconds in approved and properly operated equipment. After pasteurisation the milk is immediately cooled to 5 C or below. The process of heating, holding and rapid cooling called pasteurisation (named after Louis Pasteur, the french scientist) ensures that the bacteria is destroyed. This mild form of heat treatment kills any pathogenic bacteria that may be present without affecting nutrimal value or the flavour. It also extends the shelf life by reducing the spoilage bacteria. Shri Ashokan, learned counsel appearing for the Revenue, has brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct means a product which is not used as milk. When milk is processed a commodity which is entirely different from milk and which cannot be identified as such may be obtained and the commodity so obtained can be called as milk product. Its composition and use will be basically different from that of fresh milk or pasteurised milk. Entry 23 of the Third Schedule speaks of fresh milk including pasteurised, toned or reconstituted milk. Before us it is not a case of the assessee or his learned counsel that what is being sold is fresh milk, but pasteurised milk. Admittedly, the milk is heated to a particular temperature which is already mentioned and immediately thereafter cooled and to supplement the pasteurised milk, vitamins A and D is add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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