SAHU MILLS Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE matter in this writ petition arises under the Andhra Pradesh General Sales Tax Act, 1957 herienafter referred to as the 'the Sales Tax Act. The petitioners are all businessmen registered as dealers under the provisions of this Sales Tax Act and the Central Sales Tax Act. They also deal in tobacco seeds. Previously when the petitioners were subjected to levy of tax under the Sales Tax Act on the transactions in tobacco seeds they and others filed writ petitions in this court challenging the levy of tax of tobacco seeds contending that tobacco seeds is an item exempted from tax in as much as it falls within the expression "tobacco and all its products" in Item 7 of Schedule 4 to the Sales Tax Act which contains Items of goods exempted from the levy of sales tax under the Sales Tax Act. This Court by a decision of a Bench dated 11. 03. 70 in writ petitions Nos 1445 to 1458 of 1968 and batch reported in Amara Purushotham Mammidi Obaiah and Co. v. State of Andhra Pradesh - (1972) 29 STC 654 (Andhra Pradesh) declared that the levy of tax on tobacco seeds is illegal as tobacco seed comes within the expression "tobacco products" and hence tobacco seed is an Item declared by Schedule 4 as an exempted Item from tax. This court set aside the various assessments so far as they were concerned with tax on tobacco seeds.

(2.) SUBSEQUENTLY the State Government passed Act 9 of 1970 ending certain provisions of the Sales Tax Act. One of the changes made by this Amendment Act is the amendment of some Items including Item 7 of the Schedule 4 in the following manner. Section 7 of the Amendment Act is as follows: -' 7 In the Fourth as Schedule to the Principal Act :

(3.) BUT in the Additional Duties of Excise (Goods of Special Importance) Act, 1957, as provided under Section 2 (d) the definitions given in the Central Excises and Salt Act, 1944 are as follows-` the words and expressions "sugar", "tobacco", "cotton fabrics", "rayon or artificial silk fabrics" and "woollen fabrics" shall have the meanings respectively assigned to them in the Central Excises and Salt Act, 1944. '