1989 (12) TMI 336 - HC - VAT and Sales Tax

Summary

Issues:
1. Classification of "fried gram" under the Tamil Nadu General Sales Tax Act.
2. Interpretation of entry 6-A of the Second Schedule to the Act.
3. Consistency in judicial decisions regarding the taxability of "fried gram."

Analysis:
The judgment by the Madras High Court revolves around the classification of "fried gram" under the Tamil Nadu General Sales Tax Act. The primary issue is whether "fried gram" falls under entry 6-A of the Second Schedule to the Act or is exigible to tax under entry 80(b) of the First Schedule. The Assessing Officer, Appellate Assistant Commissioner, and Sales Tax Appellate Tribunal have held that "fried gram" is not covered by entry 6-A. However, a dissenting view was taken by the Sales Tax Appellate Tribunal (Additional Bench), Coimbatore, and approved by a Division Bench of the High Court in a previous case.

The judgment references the interpretation of entry 6-A, which includes the term "pulses, that is to say, gram or gulab gram, etc." The court considers whether the process of parching or frying gram alters its classification as a different commodity. Previous judicial decisions, including a case before the High Court, have analyzed the scope of sections 14 and 15 of the Central Sales Tax Act in relation to the classification of fried gram as pulses or grams under entry 6-A of the Second Schedule.

A Division Bench judgment from the Andhra Pradesh High Court is cited, expressing dissent with the Madras High Court's view on the taxability of "fried gram." The court, after evaluating the arguments presented, upholds its previous decision that "fried gram" should be classified under entry 6-A of the Second Schedule. The court emphasizes the legislative intent behind including pulses and grams under the Central Sales Tax Act, supporting the conclusion that fried gram falls within the specified category.

In conclusion, the Madras High Court rules in favor of classifying "fried gram" under entry 6-A of the Second Schedule to the Tamil Nadu General Sales Tax Act. The orders of the Tribunal and other authorities are set aside, and the tax cases are allowed, with no costs imposed. The judgment highlights the importance of consistent interpretation and application of tax laws to ensure clarity and uniformity in classification and taxation of goods.