J SHAMDAS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE short question that requires determination in this tax revision case is whether the levy of sales tax on zarda under the Andhra Pradesh General Sales Tax Act (hereinafter called the Act) is according to law.

(2.) THE assessee is a partnership concern having three places of business in the twin cities of Hyderabad and Secunderabad. They are general merchants who deal in general goods, cotton yarn etc. In regard to their turnover of Rs. 24,538.40 representing the sale of zarda which is an Urdu word for "chewing tobacco", they were subjected to sale tax for the assessment year 1961-62, i.e., for the period from 1st April, 1961 to 31st March, 1962. The assessee objected to the levy of tax on zarda on the ground that zarda is a tobacco product and it falls under item 7 of Schedule 5 of the Act. The Commercial Tax Officer, however, did not accept that contention. The matter was carried in appeal to the Assistant Commissioner of Commercial Taxes who held that as zarda manufactured by the assessee had not suffered additional excise duty, the levy of sales tax was justified. He accordingly dismissed the appeal. The assessees then took up the matter to the Sales Tax Appellate Tribunal, but even there they were unsuccessful. The revision is directed against this order.

(3.) THE goods specified in Schedule 5 were : salt, electric energy, motor spirit and toddy. Subsequently by a notification, in exercise of powers vested in sub-section (1) of section 9 of the Act, the Government of Andhra Pradesh issued G.O.Ms. No. 2328, Revenue, dated 13th December, 1957, exempting "tobacco and all its products" from tax under the Act with effect from 14th December, 1957, along with sugar and all varieties of textiles. Later by the Amending Act 3 of 1958, Schedule 5 of the Andhra Pradesh Act 6 of 1957 was amended and under item 7, "tobacco and all its products" are exempted from tax under section 8 of the said Act. The amendment came into effect from 1st April, 1958, in accordance with G.O.Ms. No. 566, Revenue, dated 28th March, 1958. Admittedly subsequent to it no rule was made restricting the operation of the exemption or imposing any limitation on the relief granted under the Act. So that if tobacco is considered in its dictionary meaning, there could be no difficulty in holding the zarda being a variety of chewing tobacco, will fall within the exemption. It is to be noted that tobacco has not been defined under the Act nor there is any indication to show that tobacco has to be construed in accordance with the definition given under any other enactment. Accepting the dictionary meaning of tobacco and zarda, therefore, there is no scope for the contention that zarda is not exempted from levy of sales tax.