1969 (7) TMI 100 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether jeera, dhania, panmohuri, methi, postak, and pippali are oil-seeds within the meaning of section 14 of the Central Sales Tax Act, 1956.
2. Whether the communication No. 4(8)-ST/57, dated 31st January, 1958, issued by the Government of India, can have any legal effect to hold the goods in question as oil-seeds and whether such an official communication is binding on the State Government.

Issue-wise Detailed Analysis:

Issue 1: Definition of Oil-Seeds
The primary question was whether the goods in question (jeera, dhania, panmohuri, methi, postak, and pippali) are oil-seeds as defined under section 14 of the Central Sales Tax Act, 1956. The respondent argued that these goods fall under the definition of oil-seeds and should be taxed at 2% as per section 15 of the Central Act and the fourth proviso to section 5 of the Orissa Sales Tax Act, 1947. The State contended that these goods are spices and not oil-seeds.

The court examined the definition provided in section 14 of the Central Act, which includes "seeds yielding non-volatile oils used for human consumption, or in industry, or in the manufacture of varnishes, soaps and the like, or in lubrication, and volatile oils used chiefly in medicines, perfumes, cosmetics and the like." The court rejected the State's reliance on common parlance and emphasized that the statutory definition must be given full effect. The court referred to decisions from other High Courts but disagreed with their reliance on common parlance when a statutory definition exists.

Issue 2: Legal Effect of Government Communication
The second issue was whether the Government of India's communication dated 31st January 1958, which listed the items as oil-seeds, had any legal binding effect. The court noted that the communication had no statutory force and was not binding on the State Government. However, it could be considered as persuasive evidence based on expert opinion for administrative guidance.

Analysis of Specific Goods:
- Dhania (Coriander Seed): The court found that coriander oil is distilled from coriander seeds, making it an oil-seed.
- Jeera (Cumin Seed): Cumin oil, used in medicine, flavoring, and perfumery, is extracted from cumin seeds, qualifying it as an oil-seed.
- Postak (Poppy Seed): Poppy oil, used as food oil, in artist's colors, varnishes, and lubrication, is extracted from poppy seeds, making it an oil-seed.
- Methi (Fenugreek): Fenugreek seeds contain oil that can be extracted, qualifying it as an oil-seed.
- Panmohuri (Aniseed): Although no direct evidence was presented, the Government of India's communication listed aniseed as an oil-seed, and the court accepted it as such.
- Pippali (Long Pepper): No evidence was presented to show that oil can be extracted from long pepper, and it was not listed in the Government's communication. The court concluded that pippali is not an oil-seed.

Conclusion:
The court concluded that jeera, dhania, panmohuri, methi, and postak are oil-seeds within the meaning of section 14 of the Central Act, but pippali is not. The Government of India's communication, while not legally binding, could be considered as persuasive evidence. The reference was answered accordingly, with no order as to costs.