KHAGHHIRAM BHAGRIRAM Vs. COMMISSIONER OF SALES TAX INDORE

JUDGEMENT

(1.) THE question to be decided in this petition is whether the petitioner is liable to pay entry tax on sugar used for preparation of Bura at the rate of Rs. 2 per cent or 0. 50 per cent.

(2.) THE relevant periods with which we are concerned here are from 11th November 1977 to 31st October 1978 and 18th January 1980 to 10th august 1980. Entry tax is levied by the Madhya Pradesh Sthaniya Kshetra me Mal Ke Pravesh Par Kar Adhiniyam, 1976. Section 2 (b) of the Act defines entry tax to mean "a tax on entry of goods into a local area for consumption, use or sale therein levied and payable in accordance with the provisions of the Act and includes composition money payable under section 7-A. " Section 3 is the charging provision. Section 4 deals with the rate of tax. We are here concerned with section 4 (1) and clause (i) of the first proviso to that section which read as follows:

(3.) THE petitioner describes the process of preparation of Bura from sugar and its qualities as follows : The sugar or Khandasari is mixed with water till it is dissolved into homogeneous mixture. This mixture of water and sugar/khandsari is put into a pan and it is boiled by heating the same with energy. While the mixture is being heated, a chemical called Masala and Milk is mixed with it so that no crystals are formed. In this process impurities are taken out from the mixture and thrown as waste, The solution is then taken back from the pan or Kadhai for further purifying it by pouring it through a cloth. Thereafter, the same is boiled again till all the water in the mixture is evaporated. Manual labour is then applied to prepare amorphous powder which is called Bura. Bura is purer than sugar and is used for sweetening curd or khir and in preparing sweets, particularly Magaj or Laddu made from Besan.