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TMI Blog1977 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities including the Sales Tax Appellate Tribunal that it is taxable as molasses. We will then note a few material facts. The petitioner is a dealer in khandasari sugar and jaggery. This problem arose in respect of the assessment year 1974-75. For that year, the petitioner submitted a return showing a turnover of Rs. 31,465 relating to sales of what he called "liquid jaggery" (patla gur) and claimed that it should be taxed at 6 per cent only as jaggery, while the Commercial Tax Officer treated it as "molasses" and taxed it at 25 per cent. The Assistant Commissioner confirmed the view of the Commercial Tax Officer. In second appeal also, the view was upheld. Hence the present tax revision case by the petitioner. Sri Dasarathara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sugar, syrup got from sugar in process of refining, treacle". The Chambers's 20th Century Dictionary, 1972 Edition, gives the meaning of the word "molasses" thus: "A thick treacle that drains from sugar." Apart from the meaning that is given to the word "molasses" by the dictionaries, the nature of molasses can be described as a residue obtained in refining sugar. In the process of manufacturing ordinary sugar or khandasari sugar, the residue that is obtained is a thick, dark, uncrystallised syrup. It is generally used in the manufacture of arrack, alcohol, cattle feed and manure and for other purposes. In this connection, we may refer to the Molasses Control Order, 1961, issued by the Government of India. Clause 2(2) of the Order define ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above Control Order clinches the issue that the mother liquor produced in the final stage of the manufacture of khandasari sugar by the open pan process is also known as molasses. The substance which is now held to be molasses by the Tribunal and to which the name of patla gur or liquid jaggery is given by the petitioner is undoubtedly mother liquor produced in the final stage of the manufacture of khandasari sugar by the open pan process. Such being the case, it is undoubtedly molasses. Therefore, the Tribunal is right in coming to the conclusion that the substance was molasses and is liable to be taxed accordingly. However, as we have pointed out, Sri Dasaratharama Reddi relies on the monograph prepared by the Indian Central Sugarcane Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purities still remaining to come up in the form of white scums which are removed with the ladle. The boiling temperature of the molasses is to be kept to 122 C to 125 C to get them proper strikes. The pan containing the concentrated mass is then removed from the furnace and the contents are poured into the cooling pan. Further operations are the same as followed for making gur in the usual way. This molassine gur is only a little inferior to gur made from fresh juice and its yield is much higher than that obtained in Northern India". It is on these passages that Sri Dasaratharama Reddi strongly relies to demonstrate that what is ultimately got as patla gur is a hard substance as distinct from the liquid form of molasses. But, as pointed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nooka Agaiah v. Government of Andhra Pradesh[1977] 39 S.T.C. 521; [1976] 2 A.P.L.J. 329., where rice and puffed rice are held to be separate substances; Sri Siddhi Vinayaka Coconut Co. v. State of A.P.[1974] 34 S.T.C. 103. (S.C.)., where coconuts and watery coconuts were held to be separate commodities; Kotak Co. v. State of A.P.[1962] 13 S.T.C. 709., where cotton and cotton seed were held to be separate commodities; Baliah Setty v. State of A.P.[1962] 13 S.T.C. 726., where butter and ghee were held to be separate substances; and finally Deputy Commissioner of Commercial Taxes v. Iyanar Coffee and Tea Co.[1962] 13 S.T.C. 457. , where coffee and French coffee were held to be separate from each other. It is also pointed out by the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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