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TMI Blog1997 (2) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... remedy available to them in law. On the other hand, he has filed this petition challenging the correctness or otherwise of the levy of tax on "sugar-candy" as unconstitutional. But I must admit that while hearing the matter, I did not find any trace of any constitutional question any where in this case; justifying petitioner approaching this Court under article 226 of the Constitution, instead of following the alternate, effective, efficacious remedy provided under the Act. Since the matter was argued at length, out of sheer deference to the learned counsel, I shall deal with the matter on the merits of the case; on which again, I do not find anything substantial in this case. 2.. The ground urged is that "sugar" includes "sugar-candy" an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aks of levy of single point tax at 4 per cent on sugar and sugar preparation excluding such sugar and sugar preparations as are covered, described or specified elsewhere in any of the Schedules. The said entry was inserted by Act 4 of 1992 with effect from April 1, 1992. 8.. "Sugar" also finds a place in Fifth Schedule to the Act. Goods specified in the Fifth Schedule are exempt from payment of sales tax under section 8 of the Act. By Act 4 of 1992, entry 31-B was substituted with effect from April 1, 1992. The entry reads as under: "31-B. Sugar as described from time to time in column 3 of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, but excluding confectionery and the like." 9.. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly resort must be to the dictionary meaning of the word "sugar-candy". In Webster s its meaning is assigned as "A more or less solid preparation made by boiling sugar or molasses to the desired consistency and then crystallising, moulding or working into required shape". It is usually flavoured or coloured and often contains fruit nuts. In Oxford Dictionary "sugar-candy" is described as crystallised sugar made by repeated boiling and slow evaporation. 13.. In Una Subba Rao v. State of Orissa [1986] 61 STC 49, a Bench of the Orissa High Court was pleased to observe that, "it is common knowledge that though sugar-candy is made out of sugar, it is the result of a different process other than the one involved in the manufacture of sugar". ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Tariff Act, 1985, shall apply for interpretation of this Schedule also. Under the Central Excises and Salt Act, 1944, sugar is defined. It means any form of sugar in which the sucrose content, if expressed as a percentage of the material dried to constant weight at 105 centigrade would be more than ninety. In view of this, it is strongly contended by learned counsel for the petitioner that "sugar" also includes "sugar-candy". In entry 18A of the Second Schedule, Legislature intends to levy sales tax both on sugar and sugar preparation. Sugar envisaged in this entry is wholly different form or variety of sugar than the "sugar" mentioned in the Fifth Schedule. That apart Legislature specifically provides for levy of sales tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (misri in this part) is made out of sugar, it is the result of a different process other than the one involved in the manufacture of sugar. The Legislature can always pick and choose articles for taxation and say that it will tax sugar-candy, but will not tax sugar. So long as the competence of the Legislature to tax sugar-candy which is commercially a different product from sugar is accepted, it cannot be said that the sales tax authorities are wrong in treating sugar-candy as one different from sugar and bringing it within the net of taxation by amendment of List C and including the same within the list of taxable goods. As long as sugar-candy is sold in the market as a separate commodity apart from sugar, it cannot be taken as a separat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any reason, State levies tax on sale or purchase of scheduled commodities, then the State will be deprived of its share in the proceeds of additional duties of excise for that financial year. Parliament has not prohibited any State from levying tax on sugar or sugar preparation which a State can levy in view of entries in List II. 21.. For the reasons stated, I hold "sugar-candy" which is nothing but sugar preparation is liable to payment of sales tax under the Act. Accordingly, I hold "sugar-candy" is not exempt from payment of tax under entry No. 31-B of the Fifth Schedule to the Act and in view of this, I uphold the clarification of the Commissioner of Commercial Taxes, in No. CLR. CR. 80/93-94 dated September 1, 1993. 22.. With t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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