COMMISSIONER OF SALES TAX Vs. NANGUMAL RAMKISHORE

JUDGEMENT

(1.) Under Sales tax law goods are taxed either at 10% or 5% or 2% while 4th category (in schdule II) is totally exempt. Entry 9 of Schedule II exempts sugar and molasses. The dispute was whether Misri & Patasa are sugar and therefore exempt. Deptt. claimed that these were not and hence ordered reference to High Court. High Court observed that in Mangoomal Ramkishore 1974. S.T.C. 182, on consideration of Central Excise Act, 1944 and Prevention of Food Adulteration Rules 1955, it was held Bura was a form of Sugar and hence exempt. In Channulal Motilal Vs Comm. S.T , M P., it was held that Misri and Patasa are not sugar as undertood in their popular sense and hence not exempt In State of Gujrat Vs Sakarwala Bros. 1967. S.T C. 24, Supreme Court held that in the Bombay Act, word sugar has not been used in popular sense but has been given same meaning as it has in Excise Act which is any form of sugar with 90% Sucrose and as Misri and Patasa contained more than this chemical content it was exempt.] Judgement, para, 6 onwards is :-

(2.) In the Act we are dealing with, there is no limit on the words 'sugar and molasses'. The question we have to ascertain is whether the words 'sugar' and molasses, have been used from the point of view of common parlance or from the point of view of the essentlal ingredient of the article in question.

(3.) In the Prevention of Food Adulteration Rules, Appendix 'B' sets out the definitions and standards of quality. Item A. 87 deals with Sweetening Agents. There area number of sweetening agents mentioned. A. 0701 defines cane sugar and also Misri which is crystallised sugar with sucrose content not less then 98 per cent. Similarly cane sugar is defined as crystallised sugar obtained from sugar-cane having not less than 96.5 percent of sucrose It would thus appear that Misri is a super form of cane-sugar because it has a higher sucrose content. Then refined sugar is defined. It in obtained from the juice of sugar-cane of sugar-beet. In this case, the sucross content is not less than 99.8 per cent. Then Bura is defined as containing not less than 96.5 per cent of total sugar. In this definition khandsari is mentioned as having minimum sugar content of not less than 90 per cent. Gur or jaggery is defined as having total sugar content not less than 60 per cent. Cube sugar is defined as sugar in the form of cubes or cuboid blocks with not less than 99.8 per cent sucrose content. Icing sugar is defined as sugar with or without odible starch. The total of starch and sucrose not less than 98.0 per cent.