9911796707
TMI Blog1988 (4) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... it is 1977-78. 3.. According to section 3-B of the Act, inserted in 1958, the State Government may by notification declare any goods or class of goods to be liable to tax on turnover of purchases. Once any goods is declared under this provision, then no tax is payable on the sales of such goods or class of goods. It may also be mentioned that there is a great difference in the rate of purchase tax and sales tax. Therefore, in this litigation the dealers have taken the stand that the commodity in question, namely, "coconut", being a declared goods under the notification issued under section 3-B of the Act, the assessing authority had committed an apparent error of law in subjecting the goods to sales tax. 4.. Let us first notice the legis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lared commodity. By the notification of the same date, the rate of purchase tax was fixed at 4 per cent. It is on the basis of the above description that it was vehemently contended on behalf of the dealers that coconut has been included as an item in "oil-seeds", and all that the notification intended to exclude therefrom was only tender coconut which is usually understood to mean the early stage of the fruit during which it mostly contains water and kernel is not formed therein. We may usefully make a reference to section 14 of the Central Sales Tax Act which enumerates "certain goods to be of special importance in inter-State trade or commerce". Section 14(vi)(viii) reads as follows: "(vi) Oil-seeds, that is to say,- (i) to (vii) .... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing any oil. In this case, although the period of assessment was 1968-69 which is a ground for distinguishing the authority and the subsequent notification in question had been issued thereafter, there is no gainsaying that the nature and character of the coconuts botanically would remain the same. As indicated earlier, this question had fallen for consideration before different High Courts and the decisions of some of the High Courts were also cited before us. On a perusal of the authorities, it would appear that different State Legislatures have described different varieties of coconuts in their schedules which has led to divergence of opinion regarding the interpretation of the item. The Allahabad, Andhra Pradesh, Kerala and Mysore High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tree akin to coco-palm or coconut-palm which produces the coconut, a large edible nut yielding coconut-butter or coconut-oil and coconut-milk. "Copra", according to the Chambers Dictionary, is the dried kernel of the coconut yielding coconut oil. 6.. It appears from the discussions in the order of the Tribunal that the nature of coconuts dealt with by the two dealers was fully grown coconuts with well-developed kernel containing water which could not be called either tender or dried coconuts. This is the well-known variety of coconuts used for culinary purposes and on auspicious occasions and as a part of offerings in temples. It is for this view that the Revenue authorities have come to hold that the nature of coconut dealt with by the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin it gets dried up and thereafter the kernel also gets dried up and shrinks and gets detached from the bony inner cover. The whole kernel after it has reached this stage would be in the shape of hollow sphere and is called 'copra' ....... The main or predominant use of copra is the manufacture of coconut oil, which is profusely used for various domestic purposes, such as hair-oil, cooking medium, etc. Coconut oil is predominantly used for these purposes in west coast belt........" 8.. Long before, the Andhra Pradesh High Court in the case of Tagoob Mohammad of Kanchili v. Commercial Tax Officer, Srikakulam [1971] 28 STC 110 was considering a case of "watery coconut". It was held that if a commodity possesses all the qualities of an oil- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... religious and social functions, whereas dried coconuts are used mainly for extracting oil. This court has in a number of cases held that the same commodity at different stages could be treated and taxed as commercially different articles..." In my considered opinion, reliance placed upon this authority of the Supreme Court on behalf of the Revenue is entirely misconceived inasmuch as the relevant expression here is not "watery coconut" but "tender coconut". Tender coconut is that kind of coconut in which there is hardly any kernel developed, which in common parlance is called paido or dabo, which only has been excluded from the class of coconuts. It has been observed in Mahamaya Coconuts' case [1976] 38 STC 120 (Orissa) that panichi cocon ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
