1977 (3) TMI 127 - SC - VAT and Sales Tax

Whether green ginger falls within the category of goods described as vegetables, green or dried, commonly known as 'sabji, tarkari or sak' in item 6 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941? Held that - Appeal dismissed. Green ginger is included within the meaning of the words vegetables-commonly known as 'sabji, tarkari or sak' in item 6 of Schedule I and its sales must be held to be exempt from tax under section 6 of the Act.

Summary

Issues:
Whether green ginger falls within the category of goods described as "vegetables, green or dried, commonly known as 'sabji, tarkari or sak'" in item 6 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941.

Detailed Analysis:
The judgment revolves around the interpretation of whether green ginger can be classified as a vegetable under the Bengal Finance (Sales Tax) Act, 1941. The Act exempts certain goods from sales tax, including "vegetables, green or dried, commonly known as 'sabji, tarkari or sak'." The primary issue is whether green ginger falls within this exemption category, which would make it exempt from sales tax. The sales tax authorities initially held that green ginger, being used for flavoring food, does not qualify as a vegetable commonly known as "sabji, tarkari or sak." However, a single Judge of the High Court disagreed and ruled in favor of green ginger being considered a vegetable. This decision was upheld by a Division Bench of the High Court, leading to the State's appeal to the Supreme Court.

The Supreme Court analyzed the term "vegetable" as not being defined in the Act but interpreted based on common parlance. Referring to previous judgments, the Court emphasized that the term "vegetable" should be understood in its popular sense, denoting classes of vegetable matter grown in kitchen gardens and used for the table. The Court cited precedents where items like betel leaves and sugarcane were not considered vegetables. It highlighted that the word "vegetable" in a taxing statute should be construed according to its popular sense, as understood by people familiar with the subject matter.

The Court concluded that green ginger qualifies as a vegetable commonly known as "sabji, tarkari or sak" under item 6 of Schedule I. It reasoned that green ginger, grown in kitchen gardens or farms and used in meals, is typically sold by vegetable vendors and considered a vegetable by consumers. The Court noted evidence presented by the assessee, such as railway authorities treating green ginger as a vegetable for tariff purposes. Additionally, the Corporation of Calcutta included green ginger in the vegetable category in its market bulletin. Considering these factors, the Court affirmed the High Court's interpretation and held that green ginger's sales are exempt from tax under section 6 of the Act.

In conclusion, the Supreme Court dismissed the appeals, upholding the classification of green ginger as a vegetable and therefore exempt from sales tax. The Court ordered costs to be in one set, affirming the decision in favor of green ginger's vegetable status.