KAMAL JAIN Vs. STATE OF ASSAM

JUDGEMENT

(1.) By this writ petition, petitioner seeks to challenge the inclusion of sugar other than the sugar candy as item excluded from the provisions of Assam General Sales Tax Act 1993 in Sl. No. 36 of Schedule I in the list of exempted item.

(2.) The petitioner has started Misri business, after coming into force of Assam General Sales Tax Act, 1993 (hereinafter referred to the Act, 1993) and he is the sole proprietor of M/s. Monika Enterprise at Guwahati. The contention of the petitioner is lhat prior to repeal of Assam Sales Tax Act, 1947 by Section 74 of the Act, 1993, 'Sugar candy' was exempted from tax being 'Sugar' vide item/Serial No. 46 of the Schedule III of the Repealed Act. But subsequently, vide item No. 36 of Schedule I appended to the Assam General Sales Tax Act, 1993, the definition of sugar was altered by the State Legislature. By this, sugar candy has been excluded from the purview of sugar and made taxable within serial No. 2 of Schedule III appended to the Act, 1993 @8% in the Rupee. Challenging the legislative competency to alter the definition of sugar, so as to exclude sugar candy from its purview, it is submitted by Mr Bhati, learned counsel for the petitioner that sugar vide Clause (viii) of Section 14 of the Central Sales Tax Act is one of the items of special importance in inter state trade and commerce, wherein sugar is defined as follows:

(3.) Mr Bhati further inviting to the definition submitted that clause 24 Chapter 17 of the Central Excise Tariff Act, 1985 defines sugar, which means any form of sugar in which the Sucrose content, if expressed as a percentage of the material dried to constant weight at 150C would be more than 90 for the purpose of sub-heading namely, 1710.10, 1701.20, 1710.31 and 1701.39 and that specially sub-headings 1701.20 and 1701.39 give a wide definition of sugar so as to include any form of sugar - including sugar candy which is nothing but purified sugar itself, as sugar candy contains no other ingredients but sugar and that it is not a distinct item.