1961 (7) TMI 69 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the term "millets" under Schedule III of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis:
The High Court of Andhra Pradesh was tasked with determining whether wheat falls under the category of "millets" for the purpose of taxation under Schedule III of the Andhra Pradesh General Sales Tax Act, 1957. The revision case pertained to the assessment year 1957-58, where the assessee argued that the turnover from the sale of wheat should not be taxed as it had already been taxed at the first purchase point. However, the department levied tax on wheat, contending that Schedule III did not include wheat under the definition of "millets." The crux of the issue revolved around whether the term "millets" encompasses wheat. The petitioner's argument was based on the premise that the Legislature intended to include wheat within the ambit of "millets" since the Schedule encompasses various articles consumed in the State. However, the Court disagreed with this interpretation.

The Court extensively analyzed various dictionaries such as Chambers Encyclopaedia, the Imperial Dictionary, the Oxford Dictionary, Sir James Murray's "A New English Dictionary," the Century Dictionary Encyclopaedia and Atlas, the World Book Encyclopaedia, the Encyclopaedia Britannica, and the Encyclopaedia of India to ascertain the meaning of "millets." These references consistently highlighted that millets are distinct from wheat, emphasizing factors such as geographical cultivation, usage for human consumption, and preference by poultry. The dictionaries also specified that millets include specific grains like grain sorghum, finger millet, pearl millet, and fox tail millet, none of which include wheat. Additionally, common parlance usage of the term "millet" referred to specific grains, further supporting the exclusion of wheat from the category of millets.

Based on the comprehensive analysis of various authoritative sources and the common understanding of the term "millets," the Court concluded that wheat does not fall under the definition of "millets" as per Schedule III of the Andhra Pradesh General Sales Tax Act, 1957. Consequently, dealers in wheat are not eligible for the single point tax benefit provided under the Schedule, making wheat subject to multiple point taxation. Therefore, the Court upheld the orders of the Sales Tax Appellate Tribunal, the Deputy Commissioner of Commercial Taxes, and the Deputy Commercial Tax Officer, dismissing the revision case with costs.