MOTILAL HARIPRASAD AND BROTHERS Vs. STATE OF ANDHRA

JUDGEMENT

(1.) THE assessees are dealers in ground-nut oil and cake. They purchase ground-nut and ground-nut kernel, and, after converting them into oil, sell it. During the year 1951-52, they purchased Rs. 16,41,542-1-9 worth of ground-nut and Rs. 5,87,049-7-9 worth of ground-nut kernel. The said turnover was assessed at the purchase point. The said assessment was confirmed by the Tribunal. The assessees question the validity of assessment of that part of the turnover which represents the purchase price of ground-nut kernel.

(2.) THE relevant rules of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, read as follows :-

(3.) WE cannot accept the argument. Ground-nut is a more comprehensive term, which obviously takes in kernel. The word ground-nut is used to connote both the shell and the kernel within it. We cannot discover any reason nor is any suggested to us, why the rule should make a distinction between ground-nut and ground-nut kernel and why ground-nut should be taxed at the purchase point and ground-nut kernel at the sale point. So, too, the ground on which rebate is given on sale of oil manufactured from ground-nut applies equally to ground-nut and ground-nut kernel. The fact that kernel is separately mentioned in rule 18(2) is not a pointer in support of the assessee' contention. It is necessary to mention "kernel" separately in that rule as the quantity of oil deemed to be manufactured from a particular quantity of ground-nut or ground-nut kernel varies. Nor is the mention of kapas in rules 4(2)(b) of any relevance. That rule, as it originally stood, made cotton alone taxable at the purchase point. Cotton is the soft substance of the kapas after the seeds are removed. Though kapas may take in cotton, cotton cannot include kapas. Presumably finding this difficulty, the rule was amended on 13th July, 1949, by adding the words "(including kapas)" after the words "cotton". This fact cannot, therefore, throw any light on the construction of rule 4(2)(a), for, as we have already stated, ground-nut takes in kernel also.