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TMI Blog1979 (10) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... the other period also, namely, for the period 1st July, 1959, to 31st March, 1961. In substance, the question is, whether or not sewai is a cereal and included in the relevant notification. The relevant notification is STGL-J-2042/68-12568 F.T. dated 27th December, 1968, amended from time to time prescribing the rate of tax, whether general or special, at which the particular goods were taxable. The relevant notification reads: "Cereals and pulses including all forms of rice, gram, peas, moong, arhar, masur, khesari, millet, bajra and jowar, wheat, oats, barley, maize, broken pulses, sago, besan, sattu, and flour including atta, maida, suji and bran." The rate of tax prescribed is special sales tax at 2 per cent. It may be stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxes, Patna Division, Patna, who reversed the order of the Assistant Commissioner of Commercial Taxes, on the ground that sewai was not cereal, being entirely distinct from flour and maida. It was also not cooked food. The Deputy Commissioner of Commercial Taxes, therefore, directed that the sales of sewai should be taxed at the general rate of 4 per cent for the period ending 30th June, 1959, and 3 per cent for the period ending 31st March, 1961. 4.. The dealer then filed revision applications in respect of the different periods before the Commercial Taxes Tribunal, Bihar, Patna. The Tribunal held that sewai was nothing but slender threads of wheat paste or more correctly of maida paste and retained the character of being maida. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the form of either being a cereal or maida or flour. On the contrary, it assumes a different shape altogether and looks to be of a different species. He, therefore, submitted that on a true interpretation of the said notification, the question must be answered in favour of the department and against the dealer. In support of his contention, he cited one of the decisions of the Supreme Court in the case of State of Tamil Nadu v. Pyare Lal Malhotra[1976] 37 S.T.C. 319 (S.C.).This was a case in which it was held that even though the commodities concerned belonged to the genus "iron and steel" each such item was a separate taxable commodity for the purpose of sales tax and each of them forms a separate species for each series of sales. I wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead-like article is manufactured, which is commonly known by the name of "sewai". No doubt, the original form of the cereal, out of which sewai is prepared, is lost, but the question is, merely because in the process of preparing sewai, the cereal has undergone a transformation of its actual form, whether it ceases to be a cereal. One could understand the transformation to be so much as to change the very character and form of the cereal as not qualifying to be called a cereal, but where the cereal has undergone a little process, either for being made tasty or for being made into a thing which can be used differently than as mere grain, we do not think that it can be said with justification that the character of the goods has so changed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our including atta, maida, suji and bran." 11.. According to Mr. Jain, the goods sold must retain the form as has been enumerated in the said notification. If the form is so changed that it does not conform to the description given in the notification, the sale of such goods cannot qualify for taxation at the special rate of sales tax. In this context, he has cited the decision of the Supreme Court in the case of State of Tamil Nadu v. Pyare Lal Malhotra[1976] 37 S.T.C. 319 (S.C.)., wherein their Lordships have observed that although the various forms may belong to the genus "iron and steel", yet each one of them is a separate taxable commodity by itself. In this case, a list of goods has been given under the main caption "iron and stee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d flour including atta, maida, etc., shall be taxed at the special rate of sales tax. Necessarily, it visualises that cereals and pulses can take various forms and so also atta and maida. So long as the forms which the cereals and pulses take retain their character of being edible items and identifiable as having been formed out of cereals and pulses, it is immaterial what form the cereals and pulses take, they would continue to be classified as cereal. It would be taxable only at the special rate. As we said earlier, the items given under the genus "cereals" and "pulses" are merely illustrative and not exhaustive. An item, which has not figured in the list, cannot, therefore, be excluded from the category of cereals and pulses. The only te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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