1987 (8) TMI 432 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of whether prawn is taxable under section 3-B of the Orissa Sales Tax Act based on the classification as a category of fish.

Summary:

The High Court of Orissa considered five cases referred by the Sales Tax Tribunal under section 24(1) of the Orissa Sales Tax Act, 1947, all concerning the taxability of prawn under section 3-B. The main question posed was whether prawn should be classified as a category of fish for taxation purposes. The dealer involved was the same across all cases, spanning five assessment years from 1970-71 to 1975-76.

The Court quickly disposed of the issue by referencing a prior Bench decision in the case of State of Orissa v. Cifoods Limited [1982] 50 STC 152, which had already addressed and resolved the classification of prawn and fish. The Court noted that in the reported decision, it was established that "qualitatively fish and prawn are two different commodities."

Despite the argument put forth by the learned Standing Counsel that the previous decision should not have a binding effect due to the nature of the proceeding, the Court disagreed. It clarified that the previous case had considered the same notification and item, leading to a clear distinction between fish and prawn as separate commodities.

Consequently, the Court ruled in favor of the dealer in all cases, holding that prawn should not be taxed under section 3-B of the Orissa Sales Tax Act. No costs were awarded in this matter.

In conclusion, the reference was answered in the negative, affirming that prawn is not to be considered taxable under the specified section of the Sales Tax Act.