INDUS TRADING AGENCIES AJMER Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE following question has been referred to us: - "whether cornflakes are a form of maize in terms of the notification No. F. 5 (15) FD (CT)/65/iv Dated 2-11-65 and earlier one of 2-3 63 and if so taxable at the rate of 1% as prescribed in the said notification. "

(2.) THE facts arc that in the assessment for the period 1-4-65 to 31-3-66 in the case of Messrs Indus Trading Agencies, Ajmer, under Sec. 10 of the Rajasthan Sales Tax Act, the Commercial Taxes Officer, Ajmer by his order dated 9-5-67 charged tax on 'cornflakes' at 10%. THE assessee himself, as stated in the assessment order, had collected and paid tax at 2%. During the hearing for the assessment, it was pleaded on behalf of the assessee that the commodity was a form of cereal. THE assessing authority disagreed and held that this is an item of 'food provisions' and, as it is sold in sealed plastic containers, it was taxable during the relevant period at 10% the rate applicable to 'eatables' sold in such packing. On appeal, the Deputy Commissioner also took the same view. An additional argument was advanced before him that even if 'cornflakes' are deemed to be eatables they would not be taxable at 10%, as only those eatables which are listed in the relevant entry in the notification regarding rates, would be covered by the entry and not others. This argument did not find favour with the Deputy Commissioner as he said that the list in the entry was only illustrative. THE assessee then came up in revision.