1973 (2) TMI 121 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Taxability of sales of rationed foodgrains.
2. Applicability of Notification S.R.O. No. 602/63 to sales of wheat.
3. Classification of coriander and methi as oil-seeds under section 14(vi) of the Central Sales Tax Act.
4. Taxability of containers.

Detailed Analysis:

1. Taxability of Sales of Rationed Foodgrains:
The main question was whether the sales of rationed articles by the assessee to retailers were sales under the General Sales Tax Act. The Tribunal had previously ruled in favor of the assessee, influenced by the Supreme Court's decision in Chittar Mal Narain Das v. Commissioner of Sales Tax, U.P. However, the court clarified that the Supreme Court's decision pertained to compulsory acquisitions by the State, which are not sales. The court emphasized that sales of rationed articles by retailers to card-holders are considered sales under the Sales Tax Act, as indicated by the Supreme Court in Salar Jung Sugar Mills Ltd. v. State of Mysore. Consequently, the court held that the sales of rationed articles by the assessee to retailers are taxable sales.

2. Applicability of Notification S.R.O. No. 602/63 to Sales of Wheat:
The Tribunal had erroneously applied Notification S.R.O. No. 602/63 to the sales of wheat by the assessee. Both the Government Pleader and the counsel for the assessee agreed that this notification was not applicable. The court directed the Tribunal to reconsider whether the sales of wheat were indeed first sales within the State, as this aspect was not previously addressed.

3. Classification of Coriander and Methi as Oil-Seeds:
The Tribunal had accepted the assessee's contention that coriander and methi were oil-seeds under section 14(vi) of the Central Sales Tax Act, based on a Division Bench ruling of the Orissa High Court. However, the court referred to a recent Division Bench ruling in State of Kerala v. Moidoo, which held that clause (vi) of section 14 does not define "oil-seeds" but merely explains the term. The court concluded that coriander and methi are not considered oil-seeds in common parlance or by dealers. Therefore, the assessee is not entitled to any tax exemption on the sales of these articles.

4. Taxability of Containers:
The Tribunal did not initially consider the taxability of containers, as it deemed it unnecessary based on its conclusions on other issues. With the court's different view on the primary question, it directed the Tribunal to also address whether the containers are liable to tax.

Conclusion:
The court allowed the revision cases, ruling that the assessee is not entitled to any exemption on the sales of rationed articles. The Tribunal was instructed to reconsider the taxability of wheat sales as first sales within the State and the taxability of containers. The Tribunal was also directed to modify its decision based on these considerations. The petitions were allowed without any order regarding costs.