1959 (5) TMI 36 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the term "green vegetable" in a sales tax exemption notification.
2. Whether sugar-cane qualifies as a green vegetable for exemption from taxation under the Bihar Sales Tax Act.

Analysis:
The case involved a dispute regarding the taxation of sugar-cane under the Bihar Sales Tax Act, specifically whether sugar-cane should be considered a green vegetable for exemption from taxation. The Board of Revenue referred the question to the High Court for determination. The contention was that the sale of sugar-cane to a sugar factory should be exempt from tax based on a government notification dated August 28, 1947, listing items exempt from taxation, including green vegetables other than potatoes.

The High Court analyzed the notification and the definition of "vegetable" from the Oxford Dictionary, concluding that the term "green vegetables" in the notification should be interpreted in the context of other exempt items like bread, flour, meat, fish, etc., which are fit for human consumption either cooked or uncooked. The court held that sugar-cane does not fall within this definition as it is not commonly consumed as a vegetable in Bihar. The court emphasized that sugar-cane does not meet the criteria of being a plant cultivated for food, commonly eaten raw or cooked with other foods.

Ultimately, the High Court ruled in favor of the State of Bihar, holding that sugar-cane does not qualify as a green vegetable under the notification and is therefore not exempt from taxation under the Bihar Sales Tax Act. The court did not award any costs for the reference.

In conclusion, the judgment clarified the interpretation of the term "green vegetable" in the context of a sales tax exemption notification and determined that sugar-cane does not meet the criteria to be considered a green vegetable for tax exemption purposes under the Bihar Sales Tax Act.