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TMI Blog1990 (9) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... id two assessment years, the assessee, namely, Messrs. Andavar and Company, while submitting the returns, objected to the tax being levied on the purchase of groundnut kernel at single point rate under item 6(i) of the Second Schedule to the Act. The Tribunal, by a common order in both the appeals, namely, C.T.A. Nos. 314 and 315 of 1980, held that the groundnut kernel will not fall under the abovesaid entry. However, it held that it would be liable to tax at multi-point rate. Aggrieved by the decision of the Tribunal that it is multi-point rate, the assessee filed two revision petitions, namely, T.C. Nos. 69 and 70 of 198 1. The Revenue filed T.C. Nos. 626 and 627 of 1981 challenging the view of the Tribunal that the groundnut kernel will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch we will refer, if necessary, at the appropriate place. His further grievance in the tax cases is that the Tribunal having agreed with his contention that "groundnut kernel" will not fall under item 6(i) of the Second Schedule to the Act, erred in further holding that "groundnut kernel" is liable to tax at the multi-point rate. According to the learned counsel, the Tribunal ought not to have decided that issue which was not within the scope of the appeal before it. He also submitted that properly speaking, "groundnut kernel" should have been included by the Legislature in the place of "groundnut", in item 6(i) of the Second Schedule to the Act having regard to the main entry, namely, "oilseeds", and failure to do so, violates article 14 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wnut is mentioned but kernel is also mentioned. The intention is obvious and plain. Both cashewnut and its kernel are subject to single point tax at the point of first purchase in the State. This makes it plain that it is not so with the groundnut and its kernel. There can be no difference in intentions, one for one item and another for yet another item. There is obvious and plain reason for mentioning cashewnut and kernel in item 88 of the First Schedule while kernel is omitted to be mentioned in item 6(i) and groundnut alone is mentioned. Item 6(A) is a similar provision incorporated under the Second Schedule to the Tamil Nadu General Sales Tax Act. It also begins in a similar manner 'pulses, that is to say'. In the notes, it is stated, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut or peanut At the point 3 1-10-1973" (arachis hypogaea) of first purchase in the State -------------------------------------------------------------------------------------- It may be mentioned here that the above extracted item is nothing but a reproduction of section 14(vi)(i) of the Central Sales Tax Act, 1956. It is true that the Supreme Court in [1976] 37 STC 319 (State of Tamil Nadu v. Pyare Lal Malhotra), had occasion to consider an entry in the Second Schedule to the Act and particularly the expression "that is to say". Learned counsel for the petitioner placed reliance on the following passage in the judgment of the Supreme Court: "......We think that the precise meaning of the words 'that is to say' must vary with the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial commodities. But the point to be considered here is, whether the "groundnut" in the sub-entry alone is to be taken into account or it must be read along with the principal entry, namely, "oil-seeds". In our view, the sub-entry must be read along with the principal entry to understand the sub-entry. If so read, there can be no room for any doubt that "groundnut" enumerated as sub-item will only mean "groundnut kernel". 7.. In this context, a Division Bench judgment of this Court in Radhakrishna Groundnut Oil Mill v. State of Madras reported in [1954] 5 STC 357 can be advantageously referred to. The Division Bench in that judgment has taken the view that the expression "groundnut" would include "groundnut kernel", while construi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principal entry is "oil-seeds". We have, therefore, no hesitation in coming to the conclusion that "groundnut" in item 6(i) of the Second Schedule to the Act will include "groundnut kernel". 8.. While interpreting the entry 6(i) of the Second Schedule "groundnut or peanut", we have to give meaning to the word "peanut" also. We may refer, with advantage, to the meaning given in Universal Dictionary-1988 Edition. Peanut=Arachis hypogaea=The edible nutlike oily seed of the vine, used for food and as source of oil. Thus, it is clear that the Legislature had only the oil-seed in mind when they referred to "groundnut or peanut". 9.. The reliance placed on the judgment of the Supreme Court reported in [1976] 37 STC 319 (State of Tamil Nadu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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