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2002 (9) TMI 827 - HC - VAT and Sales Tax
Issues:
1. Interpretation of whether "sugar candy" falls within entry 56 of the Third Schedule to the Kerala General Sales Tax Act, 1963, making it eligible for exemption from sales tax. Analysis: The Revenue challenged the assessee's claim of exemption on the sales turnover of "sugar candy," arguing that it is not considered "sugar" under entry 56 of the Act. The Tribunal allowed the appeal, stating that "sugar candy" falls within the definition of sugar under the relevant provisions. The Government Pleader contended that "sugar candy" is a distinct commodity from sugar, citing previous court decisions and dictionary meanings. The respondent argued that "sugar candy" is included in the sub-headings specified in the Central Excise Tariff Act, thus qualifying for exemption under entry 56. The Court examined the relevant provisions of the Act and the Central Excise Tariff Act to determine the scope of "sugar" under entry 56. It noted that the definition of "sugar" includes any form with over 90% sucrose content, encompassing all forms of sugar. Referring to the Supreme Court's decision in a similar case, the Court emphasized that the classification of sugar under the Act should follow the provisions of the Central Excise Tariff Act rather than common parlance. The Court focused on whether the "sugar candy" in question met the sucrose content requirement. The Tribunal had found that the sugar candy satisfied the definition of sugar under the Central Excise Tariff Act. Despite the Government Pleader's reliance on other court decisions, the Court held that the sugar candy fell under entry 56 of the Act based on the statutory definition of sugar and upheld the Tribunal's decision. As "sugar candy" was not listed in other entries of the Act, the Court dismissed the tax revision case, confirming the Tribunal's order. In conclusion, the Court's decision reaffirmed that "sugar candy" qualifies for exemption under entry 56 of the Third Schedule to the Act based on the statutory definition of sugar, emphasizing adherence to the provisions of the Central Excise Tariff Act for classification purposes.
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