TMI Blog2022 (5) TMI 1191X X X X Extracts X X X X X X X X Extracts X X X X ..... t is therefore, plain that for the purpose of ADE Act Gudakhu is also recognized as a tobacco product - It may be noted here that even in subsequent amendments to the OST Act, there is an express recognition of Gudakhu being a tobacco product. Likewise, even in the ADE Act by an amendment in 2005 Gudakhu is treated as other manufactured tobacco. Gudakhu is also another form of manufactured tobacco, this Court answers the two questions framed for consideration in favour of the Assessee against the Department. In other words, it is held that the Tribunal was not justified in holding that the sale of Gudakhu by the Petitioner was amenable to sales tax under the OST Act. The conclusion is that Gudakhu is tobacco covered by the ADE Act and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hedule to the ADE Act is exempted from sales tax. Entry 38 of the of the Exemption list (List A) (under the OST Act) reads as under: Tobacco as described in column 3 of the first schedule to the ADE Act. 4. Initially the Petitioner had filed O.J.C. No. 11976 of 1999 praying that in view of the amendment of the ADE Act with effect from 23rd July 1996, whereby Gudakhu is included as item for levy of additional duties of excise, the Sales Tax Authorities should be barred from levy sales tax on the sale of Gudakhu which is otherwise exempted. On 1st August, 2000 this Court disposed of the aforementioned writ petition permitting the Petitioner to raise the question of jurisdiction before the assessing authority. 5. On 31st March, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akhu is also recognized as a tobacco product. 9. It may be noted here that even in subsequent amendments to the OST Act, there is an express recognition of Gudakhu being a tobacco product. Likewise, even in the ADE Act by an amendment in 2005 Gudakhu is treated as other manufactured tobacco. 10. The Supreme Court in State of Orissa v. Radheshyam Gudakhu Factory (1988) 68 STC 92 (SC) held that Gudakhu is a product of tobacco in a common parlance and falls within the exemption covered by Sl. No. 35 of the Schedule to the OST Act. In the context of Gutkha, the Supreme Court in Kothari Products Ltd. Vs. Govt. of Andhra Pradesh (2000) 119 STC 553 held gutkha to be falling within the expression other manufactured tobacco . 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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