1989 (12) TMI 334 - AT - VAT and Sales Tax

Summary

Issues:
1. Interpretation of Notification No. 2252-F.T. dated 9th June, 1969.
2. Classification of green mango slices in brine as a preserved fruit or vegetable.
3. Application of West Bengal Sales Tax Act, 1954 to the sale of green mango slices in brine.

Analysis:
1. The case involved an application under Article 226 of the Constitution of India, transferred to the Tribunal, challenging the liability of the applicant to pay tax on the sale of green mango slices in brine. The applicant contended that green mango is a vegetable and not a fruit, thus not taxable under the Bengal Finance (Sales Tax) Act, 1941. The respondents argued that mango slices in brine are a preserved fruit and therefore taxable under the West Bengal Sales Tax Act, 1954.

2. The main contention revolved around whether green mango slices in brine constitute a preserved fruit or a vegetable. The Notification No. 2252-F.T. dated 9th June, 1969, specified dry or preserved fruits as taxable items. The Tribunal analyzed the process of preparing green mango slices in brine and the common parlance understanding of green mango as not a fruit. The Tribunal emphasized that the item must first be classified as a fruit to fall under the notification for taxation.

3. The Tribunal examined various legal precedents and dictionary definitions to determine the classification of green mango. It was argued that even if green mango does not meet traditional botanical criteria of a fruit, it may still be considered a fruit if it meets certain conditions. The Tribunal considered the popular understanding of fruits and vegetables in common parlance, emphasizing that statutory interpretations should align with commercial and everyday usage of terms.

4. The Tribunal rejected the argument that green mango, in its unripe state, could be considered a vegetable and noted that the absence of a statutory definition of "fruit" allowed for a common parlance interpretation. The Tribunal concluded that green mango was not commonly treated as a fruit and therefore could not be taxed under the notification. Consequently, the application was allowed, and the applicant was relieved from tax liability on the sale of green mango slices in brine.

5. The judgment was delivered by the Tribunal comprising Banerji P.C. and Ray L.N. The Tribunal unanimously agreed on the decision to allow the application and made the interim injunction absolute, disposing of the case without costs.