1991 (1) TMI 407 - HC - VAT and Sales Tax

Summary

Issues: Validity of tax imposition under entry 103 of Tamil Nadu General Sales Tax Act on appalam; Interpretation of entry requirements pre and post amendments; Nature of appalam as a food item; Requirement of packaging for tax imposition.

The judgment addressed the validity of tax imposition under entry 103 of the Tamil Nadu General Sales Tax Act on appalam, challenging its classification as a substantial food item and the packaging requirements for tax applicability. The entry underwent amendments over the years, specifying the types of food items covered. The court noted that appalam, made from blackgram flour, fell under the category of food preparations from cereals as per the entry. The petitioner argued that appalam should not be considered a food item due to its lack of nourishment qualities, citing a previous judgment regarding arrow-root powder. However, the court disagreed, emphasizing that food, regardless of varying qualities, provides nourishment, and appalam, being a pulse product, contains essential ingredients for nourishment, thus justifying its classification as a food item under the entry.

Regarding the packaging requirement, the court clarified that the pre-amendment entry did not necessitate watertight packaging for tax imposition, only that the product be sold in packets, which the petitioner complied with. Post-amendment, the packaging specifications were no longer a condition for tax application under entry 103. The court highlighted that the focus was on whether the product was sold in packets, not the type of packaging used. Consequently, the assessing authorities were deemed correct in levying tax under entry 103 on the appalam sold by the petitioner. The court dismissed the revision petitions, finding no merit in the challenges raised and ruled in favor of upholding the tax imposition.