1971 (11) TMI 149 - HC - VAT and Sales Tax

Summary

Issues:
1. Determination of whether coriander seeds are classified as "oil-seeds" for the purpose of sales tax assessment.

The judgment by the Kerala High Court addressed the issue of whether coriander seeds should be considered "oil-seeds" under the Central Sales Tax Act, 1956. The Sales Tax Appellate Tribunal had previously ruled that coriander seeds fell under the definition of oil-seeds based on a decision by the Orissa High Court. The Central Sales Tax Act defines oil-seeds as seeds yielding non-volatile oils used for various purposes. The Tribunal's decision was challenged by the revenue, arguing that coriander seeds should not be classified as oil-seeds and should be taxable at all points of sale. The court examined the relevant provisions of the Central Sales Tax Act, emphasizing that oil-seeds are taxable at the point of first sale in the state. The court noted that previous decisions had interpreted the term "oil-seeds" broadly, considering the definition provided in the Act. However, the revenue contended that the Act did not contain a strict definition of oil-seeds and that common parlance understanding should apply. The court referred to decisions by the Federal Court and the Privy Council regarding interpretative words like "that is to say," concluding that they are illustrative rather than limiting. The court also cited Supreme Court decisions emphasizing the common understanding of terms in sales tax statutes. Ultimately, the court remitted the case back to the Tribunal to determine whether coriander seeds are commonly understood as oil-seeds, emphasizing that the ordinary perception of the term should guide the classification. The parties were directed to bear their respective costs, and the case was remitted for further investigation.