1979 (1) TMI 221 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the term "oil-seeds" under section 14 of the Central Sales Tax Act, 1956.

Analysis:
The dealer, registered under the Bengal Finance (Sales Tax) Act, claimed that certain goods should be taxed at 2% as they were oil-seeds under section 14 of the Central Sales Tax Act, but the Sales Tax Officer levied taxes at 5%. The Assistant Commissioner upheld this decision, stating that oil-seeds should only include seeds from which oil is normally extracted. The Additional Commissioner categorized the goods as spices, not oil-seeds, based on common parlance. The Board of Revenue member found the term "oil-seeds" could be stretched to include the items but did not interfere with the previous decision.

A question of law was referred to the West Bengal Commercial Taxes Tribunal regarding whether certain items were oil-seeds under the Central Sales Tax Act. The High Court referred to a Supreme Court decision where items like coriander, cumin, and fenugreek were considered oil-seeds based on their extraction of oil. The Supreme Court also highlighted a Ministry of Finance notification including various items as oil-seeds. The High Court concluded that the items in question, including joan and cardamom, should be considered oil-seeds based on their extraction of aromatic substances and oil, aligning with the Supreme Court's interpretation.

In conclusion, the High Court answered the reference in the affirmative, stating that the items in question, including joan and cardamom, should be classified as oil-seeds under section 14 of the Central Sales Tax Act, 1956. The decision was based on the extraction of aromatic substances and oil from these items, aligning with the Supreme Court's interpretation in a similar case.