JAGABANDHU ROUL Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE following question was called upon by this court to be referred by the Sales Tax Tribunal :

(2.) THE facts out of which this question arises are simple. The petitioner carries on business in gundis, both kada and mitha. The assessment was for quarters ending 31st December, 1960, to 31st December, 1961. Under entry 35 in Notification No. 33925 C. T. A. 130/57-F, dated 30th December, 1957, "tobacco and all its products" were exempted during the relevant period under section 6 of the Orissa Sales Tax Act from payment of sales tax. The short question is whether mitha gundi is a tobacco product. In mitha gundi tobacco constitutes 10 per cent. according to the case of the petitioner. The Tribunal observed that "assuming that mitha gundi was prepared according to this formula (about which there is no satisfactory material), even then the percentage is very small and it cannot make the gundi a tobacco product. "

(3.) GUNDIS are of three varieties - kada, mitha and sada ([omitted word is "sada" in Oriya]) gundi. The constituents of the last variety are dhania and panmahuri without any other material having intoxicating effect. In mitha gundi the intoxicating element is comparatively less while in kada gundi it is fairly high. These three varieties of gundi attract three different classes of consumers. One who is not at all addicted to any intoxication cannot stand mitha gundi. A slight taking of mitha gundi would cause reeling effect in the brain while those who are accustomed to kada gundi would not also like to take mitha gundi as it would not produce the desired intoxicating effect. Thus mitha gundi has its own special class of consumers who are attracted to it because of its contents of tobacco element being very little. All the same it gives them the maximum pleasure. The pleasure derived by each class of consumers from one type of gundi is maximum only if they take that variety of gundi. To illustrate : A man accustomed to take kada gundi would not at all like to take mitha gundi. Similarly, a man accustomed to mitha gundi would not at all tough kada gundi. A person taking to sada gundi mainly consisting of dhania and panmahuri would never touch the other types of gundi. It would appear from the aforesaid analysis that mitha gundi has its attractiveness for the intermediate class of consumers because of its low percentage of intoxicating ingredient. To them the tobacco contents make all the difference. In common parlance, therefore, mitha gundi will be taken to be a gundi for that class of consumers and to the sellers of such gundi. In that sense one must have to take it as a tobacco product.