1998 (8) TMI 635 - SC - VAT and Sales Tax

Summary

Issues: Classification of cut and dried chicory roots under the Gujarat Sales Tax Act, 1969

Analysis:
1. The appeal concerns the classification of cut and dried chicory roots under the Gujarat Sales Tax Act, 1969. The appellant assessees argue that the roots fall under Entry 8 or Entry 23 of the First Schedule, while the Revenue contends they fall under the residuary entry, Entry 13 of the Third Schedule.

2. The Tribunal and High Court differed in their interpretations. The Tribunal concluded that dry chicory roots did not fit under Entries 8 or 23, while the High Court applied the popular parlance test and also excluded them from these entries.

3. The appellants' counsel argued that the character of chicory roots remained unchanged even after being cut and dried, citing a relevant judgment. In contrast, the Revenue's counsel claimed that drying and cutting altered the roots' character, making them no longer tubers.

4. Referring to a previous case involving pineapples, the Court emphasized that the essential identity of a commodity must remain unchanged after processing. In this context, the Court analyzed the agreement between the appellants and cultivators, concluding that the chicory roots' essential character remained intact despite cutting and drying.

5. The Court found that dried chicory roots, being tubers, fell within the ambit of Entry 23 of the Act, which includes tubers and plants other than orchids. Consequently, the roots were deemed taxable under this entry.

6. The second question raised in the appeal was not pursued due to the resolution regarding the classification of chicory roots. As a result, the appeal was allowed, the judgment under appeal was set aside, and no costs were awarded.

This comprehensive analysis of the judgment addresses the issues involved in the classification of cut and dried chicory roots under the Gujarat Sales Tax Act, 1969, providing a detailed examination of the arguments presented and the Court's final decision.