1985 (7) TMI 382 - SC - VAT and Sales Tax

Summary

Issues:
1. Whether a ripened coconut is considered a "fresh fruit" or a "vegetable" for the purpose of exemption from sales tax under a specific notification.

Analysis:
1. The main issue in this case revolves around determining whether a ripened coconut qualifies as a "fresh fruit" or a "vegetable" under a sales tax exemption notification. The High Court held that a ripened coconut does not fall under either category, making it liable for sales tax. The appellant challenged this decision, leading to the current appeal.

2. The Supreme Court applied the principle of interpreting statutory terms based on their popular meaning rather than scientific definitions. While a coconut may botanically be considered a fruit, it must be a "fresh fruit" to qualify for exemption. Similarly, being available in a vegetable market does not automatically classify a coconut as a vegetable. The Court emphasized that household items like fresh fruits and vegetables should be understood in the context of everyday use, where a coconut does not fit the common understanding of these terms.

3. The Court rejected the appellant's reliance on legislative history, stating that previous notifications did not exempt coconuts from sales tax. The amendment under the Tamil Nadu Act of 1970, which brought coconuts under single-point taxation, was deemed irrelevant to the current case. Therefore, the Court affirmed the High Court's decision that the appellant's coconut sales turnover was not exempt from sales tax.

4. Justice Sabyasachi Mukherjee, concurring with the decision, highlighted the importance of evidence in claiming exemptions. While agreeing with the conclusion that a ripened coconut does not qualify as a "fresh fruit," Justice Mukherjee expressed uncertainty regarding its classification as a "vegetable." He emphasized the need for evidence to support claims of exemption and noted the variation in food habits across different regions.

5. Justice Mukherjee stressed the importance of providing the assessee with an opportunity to present evidence to support their claim for exemption. In this case, the appellant failed to provide such evidence, leading to the dismissal of the appeals. While acknowledging the subjective nature of classifying a ripened coconut as a vegetable, Justice Mukherjee agreed with the overall decision to uphold the sales tax liability on coconut sales.