AVADH SUGAR MILLS LTD Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THE appellant has been taxed on its purchases of groundnuts. A notification issued by the State Government under the Sales Tax Act imposes purchase tax on "oil-seeds". The neat point for consideration is: Are groundnuts "oil-seeds"?

(2.) COUNSEL for the appellant asked us to answer the question in the negative. In support of his argument he has relied on the dictionary meaning of "oil-seed" and "groundnut". According to the dictionaries an oil- seed is a seed yielding oil, and groundnut is a small farinaceous edible tuber of the wild beans. So it is said that while an oil-seed is a seed, a groundnut is a species of beans. Counsel has also referred us to certain decisions in support of his argument. In The State of Andhra Pradesh v. Kajjam Ramachandraiah ([1961] 12 S.T.C. 795), the Andhra Pradesh High Court has held that coriander, voma and sompu are not oil-seeds. We are not concerned with these things in this case, but certain observations are noteworthy. The Court said: "The important question, to our mind, is not whether oil can be extracted from these seeds, but whether they are known in this country in common parlance to be oil-seeds within the contemplation of the Legislature."

(3.) THIS decision is directly on the point. It will be worthwhile to bear in mind the remarks of the Court as regards the principles of interpretation. The Court said: "Now, the term 'oil-seeds' has not been defined in the Act. But it is a term of everyday use, and so it must be construed in its popular meaning, that is to say, in 'that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it.' It must be construed as understood in common language." The Court went on to say: "In its popular sense, the word 'oil-seeds' means various kinds of grain which are principally used for extraction of oil." It was further said: