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 :

(3.) IN Commissioner of Sales Tax, Madhya Pradesh v. Bakhat Rai ([1966] 18 S.T.C. 285), the Madhya Pradesh High Court held that groundnut is not an oil-seed. The Court said :