1987 (4) TMI 475 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of entry 128 of the First Schedule to the Andhra Pradesh General Sales Tax Act regarding the classification of cotton seed sludge oil and cotton seed acid oil as vegetable oils for taxation purposes.

In the judgment delivered by the Andhra Pradesh High Court, the Court addressed a revision filed by the State under section 22 of the Andhra Pradesh General Sales Tax Act, challenging the Sales Tax Appellate Tribunal's decision on the classification of cotton seed sludge oil and cotton seed acid oil under entry 128 of the Act. The Tribunal had considered these oils as vegetable oils falling under entry 128, attracting a lower rate of taxation. The State contended that these oils should be assessed as "general goods" at a higher tax rate. The Court examined the relevant entry 128, which includes various vegetable oils and specifically mentions edible oils. The State argued that only edible vegetable oils should be considered under this entry. However, the Court clarified that the entry covers all vegetable oils, edible or not, as the listed oils are illustrative. The Court noted that cotton seed sludge oil and cotton seed acid oil, being residues of refined cotton seed oil, still qualify as vegetable oils under the broad language of the entry. Additionally, the separate listing of groundnut oil as an edible oil under a different entry supported the interpretation that entry 128 is not limited to edible oils only. Therefore, the Court held that cotton seed sludge oil and cotton seed acid oil fall under entry 128 of the Andhra Pradesh General Sales Tax Act and should be taxed accordingly. The Court confirmed the Tribunal's decision, albeit with a different reasoning, and dismissed the tax revision case without costs.