1987 (4) TMI 457 - HC - VAT and Sales Tax

Summary

Issues:
Identification of garlic as a vegetable for sales tax purposes under the Kerala General Sales Tax Act.

Analysis:
The High Court of Kerala addressed the issue of whether garlic should be classified as a vegetable for sales tax purposes. The Revenue contended that garlic should not be considered a vegetable as it is commonly known as a spice, attracting sales tax. The Assistant Commissioner and Deputy Commissioner upheld this view, treating garlic as a spice. However, the Tribunal intervened, classifying garlic as a vegetable and exempting it from sales tax.

The Court referred to a Supreme Court decision in State of West Bengal v. Washi Ahmed, which defined "vegetables" as plant products used for the table, including items grown in kitchen gardens or farms. Applying this definition, the Court analyzed whether garlic fits the criteria of being used for the table and grown in farms. The Court cited a judgment by the Orissa High Court, which classified garlic as a vegetable, supporting the exemption from sales tax.

The Revenue argued that since garlic is not commonly grown in kitchen gardens in Kerala, it should not be considered a vegetable in the state. However, the Court rejected this argument, stating that if garlic is classified as a vegetable in other parts of the country, there is no reason to exclude it from that classification in Kerala.

The Court also referenced the definition of "vegetable" from the Encyclopaedia Britannica, which includes garlic as a vegetable. It highlighted that both onion and garlic are commonly used in meals and dishes, making them eligible for tax exemption as vegetables. The Court concluded that the Tribunal correctly classified garlic as a vegetable, making it eligible for tax exemption.

In conclusion, the High Court dismissed the tax revision case, affirming that garlic is indeed a vegetable and therefore eligible for tax exemption under the Kerala General Sales Tax Act.