TaxTMI 
TaxTMI 
2016 (12) TMI 959
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...."product in question") would not fall in Entry No.31 but it is a different product and hence, would fall in the residuary category. 3. The relevant facts are that the appellant is manufacturing the product in question and is marketing the said product accordingly. The Circular was issued by the Commissioner of Commercial Taxes vide Order dated 31.1.2015 for the product of nutralite clarifying that the said product is different than edible oil. The applicant made an application to the Advance Ruling Authority under the Karnataka Value Added Tax (hereinafter referred to as "the Act") for clarification. The Advance Ruling Authority ultimately inter-alia observed at Paragraph-5 which reads as follows:- "In the instant case, as admitted by the applicant and as could be seen from the ingredient contents of the said commodity, 'vegetable fat spread' is a type of fat spread and is manufactured using several ingredients including edible oil and vegetable fat content. Here, edible oil is one of the ingredients, etc. In case of milk fat spread, milk is one of the major ingredient, but the commodity cannot be treated on par with milk which is exempt from tax. Similarly, vegetable fat s....
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....nd would not fall in Entry No.31. The learned Addl. Government Advocate submitted that this Court may dismiss the appeal. 7. Before we examine the contention, we may at the outset record that it is by now well settled, for interpretation of Entry in any taxing statute that the first test will be identity of the product in the market parlance. If the product is found to be distinguishable in the market parlance, it cannot be included just on a mere composition. 8. In the event, after applying the test of market parlance, if the product is not separately identifiable then one may further examine the composition of the product in order to find out as to whether such pro duct can be included in the respective particular entry or schedule or not. In the event, after applying the second test there is any further doubt about the meaning of the entry, then one may gather the meaning by referring to dictionary meaning or scientific expression as the case may be. 9. If the facts of the present case are examined keeping in view the aforesaid broad principles for interpretation of any entry in the Taxing Statute, Entry No.31 which is already reproduced earlier includes edible oils and it ex....
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....fruit squash, paste, fruit Drink and fruit juice(whether in sealed container Or otherwise)." On a plain reading of the aforesaid entry, it transpires that all processed fruits and vegetables including fruit jams, jelly, pickles, fruit squash, paste, fruit drinks and fruit juice(whether sealed in container or otherwise) are included in the said entry. The basis of the aforesaid entry is that the items contained therein must be processed fruit or processed vegetables. Further, if the colour or the meaning of the expression "processed fruit or vegetables" is to be considered, one may be required to consider the other parts of the entry which may throw light on the intention of the Legislature. Jams, jelly, pickles, squash, paste, drink, juice, would show such processed foods may be in liquid or semi-liquid form or in the form of a paste in contra- distinction to the concentrated power form. 16. The attempt made on the part of the learned counsel for the appellant is that when the words used are "all processed" it would include all form of processed fruit and vegetables and it is not necessary that it should be in the form of liquid, semi-liquid, paste or squash or in power form. T....
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....eaf and chicory. Entry 31 provides for edible oils which are extracted from nuts. Entry 45 provides for husk and bran of cereals and pulses extracted after a process from vegetable plants. If certain entries are considered of the First Schedule which is for exempted goods then Entry 25 provides for fresh plants, saplings; Entry 30 provides for jaggery which is made out of sugarcane juice; entry 33 provides for leaf plates which is made out of plants; Entry 51 provides for toddy, neera and arrack which is extracted from fruit. If the contention of the learned Counsel for the appellant is accepted, the resultant effect would be, that all such aforesaid entries would be redundant if the said items are included in Entry 3 of the Third Schedule, unless exempted from the payment of tax. 20. Under the circumstances, we find that unless a strict meaning is given to the expression "all processed fruit and vegetables" in the form of liquid, semi-liquid paste or squash form, they would not get included in Entry 3 of Third Schedule. In any case, concentrated powder form, by applying the common parlance test would stand on an altogether different position than any fruit or vegetable found....