1993 (11) TMI 211 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of tax rate on raajma under the Rajasthan Sales Tax Act, 1954 based on different notifications.
2. Determination of whether raajma falls under the category of pulses as per relevant notifications.
3. Analysis of the notifications dated May 19, 1972, and September 8, 1976, and their implications on the tax rate applicable to raajma.

Analysis:
The revision under section 15 of the Rajasthan Sales Tax Act, 1954 was filed challenging the order of the Rajasthan Sales Tax Tribunal, which held that raajma is taxable at 2 per cent as per the notification dated May 19, 1972. The assessing authority initially levied tax at 8 per cent on raajma, considering it not falling under the category of pulses. However, the Sales Tax Tribunal concluded that raajma is indeed a pulse in common and commercial parlance, and therefore, taxable at 2 per cent as per the May 19, 1972 notification.

The notification dated May 19, 1972, prescribed a tax rate of 2 per cent on pulses, including various forms like "dal", "besan", and "bran". The Tribunal found raajma to be commonly understood as a pulse and held that the notification of May 19, 1972, still applies to raajma, despite the subsequent notification of September 8, 1976. The Court emphasized that the meaning of a commodity in common and commercial parlance is crucial for taxation purposes, and in this case, raajma qualifies as a pulse.

Regarding the notifications, the Court highlighted that the September 8, 1976 notification specified certain goods at a tax rate of 4 per cent, excluding raajma. The Court clarified that the supersession in the September 8, 1976 notification pertains to specific items mentioned therein, and since raajma was not listed, it remains taxable at 2 per cent as a pulse under the May 19, 1972 notification. The Court also noted the amendment in the Central Sales Tax Act, 1956, specifying pulses as goods of special importance, aligning with the treatment of pulses under the Rajasthan Sales Tax Act.

In conclusion, the Court upheld the Tribunal's decision, affirming that raajma is taxable at 2 per cent as a pulse under the notification dated May 19, 1972. The revision petition challenging this decision was dismissed, emphasizing the correct interpretation of the notifications and the classification of raajma as a pulse for taxation purposes.