TMI Blog2008 (4) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... d commission agent in dyes, colour, glucose and maize starch. In the return for the year 1985-86, it paid tax at four per cent on maize powder. The assessing officer by its order dated August 7, 1993, levied tax at the rate of nine per cent treating it as kirana goods. The assessee, aggrieved by the same, preferred an appeal and the appellate authority by its order dated August 17, 1994 dismissed the same and confirmed the order of the assessing officer. The assessee thereafter filed revision before the Commercial Taxes Tribunal, which by order dated June 6, 1995 upset the orders of the assessing officer and the appellate authority and held that maize powder is nothing but maize starch and hence taxable at the rate of four per cent and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding all forms of rice, peas millet, kodo, kutti, jowar and bajra, wheat, barley, maize, sago, besan and sattu and cereals as defined in section 14 of the Central Sales Tax Act, 1956. Item No. 75 specifies the tax on kirana goods at the rate of nine per cent and same has been described as follows: 75. Kirana goods Explanation. Kirana goods means (1) and (2) . . . 3.. All kinds of starch . . . There is no controversy that if the maize starch comes within the category of cereal, tax at the rate of four per cent is leviable and if it comes within the definition of kirana goods , tax at the rate of nine per cent is to be charged. In my opinion, the first thing needs to be decided is as to whether maize starch is maize powd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion maize powder and maize starch cannot be said to be one and the same thing. Maize starch is used as food in the form of cornflour or in conjunction with other substances in the preparation of other edible like custard, confectioneries, etc., and is also used in laundry. Therefore, one may say that maize starch is cereal and therefore tax at the rate of four per cent is leviable. In my opinion, an item would not become a cereal and shall be covered under item No. 12 of the notification only on the ground that it can be used as cereal. As observed earlier, maize starch and maize powder is different and distinct thing. Its mere use as one of the ingredients in a food item will not make the same cereal. It is well-settled that in a fisc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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