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TMI Blog1999 (5) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... nsferred to the Special Tribunal and numbered as T.P. Nos. 2413 to 2415 of 1997 and disposed of on June 17, 1997 permitting the petitioners to file objections. Thereafter the present impugned order has been passed on September 16, 1998 imposing tax to the tune of Rs. 41,36,520 and penalty of Rs. 62,04,780. In O.P. No. 1959 of 1998 the order of assessment dated September 16, 1998 is challenged. In O.P. No. 1960 of 1998 a declaration is sought for to invalidate the serial number 63 of Part D of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 as inserted by Tamil Nadu Act 24 of 1993, as being contrary to sections 14 and 15 of the Central Sales Tax Act and section 4 of the Tamil Nadu General Sales Tax Act. It is also contended that the said entry 63 is violative of articles 14, 301 and 304 of the Constitution of India. 2.. The commodity sugar was not declared as goods of special importance under section 14 of the Central Sales Tax Act, 1956 when the said Act was enacted with effect from December 21, 1956. The Additional Duties of Excise (Goods of Special Importance) Act, 1957 was enacted by Parliament to declare goods of special importance in inter-State trade and com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excise Tariff Act above referred to. They are as follows: Heading No. Sub heading No. Description of goods Rate of duty Basic Additional (1) (2) (3) (4) (5) 17.01 Cane or beet sugar and chemically pure sucrose, in solid form -Sugar, in or in relation to the 1701.10 manufacture of which no process is ordinarily carried on with the aid power. Nil Nil 1701.20 -Khandsari sugar Sugar, other than khandsari sugar; Nil (1) (2) (3) (4) (5) Rs. Rs. 1701.31 Required by the Central Government to be sold under clause (f) of subsection (2) of section 3 of the Essential Commodities Act, 1955 (10 of 1955). 25 per quintal 25 per quintal 1701.39 -Other -Other 45 per quintal 1701.30 45 per quintal 17.02 Other sugars, including chemically Pure lactose, maltose, glucose and Fructose in any form and preparations thereof; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel. -Other sugars, including chemicallypure lactose, maltose, glucose and fructose in any form; 1702.11 -Palmyra sugar -Other Nil Nil 1702.19 15% 4. From the said of the Tamil Nadu Government, the posi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iament declared only certain kinds of sugar as goods of special importance in the course of interState trade and commerce. The commodity refined sugar imported by the petitioners from Thailand does not at all fall under any of the description covered under the various sub-headings mentioned in section 14(viii) of the Central Sales Tax Act. 6.. Therefore, the dispute between the parties is at the threshold namely, as to whether imported goods is declared goods or not. If this question is answered one way or the other, most of the other contentions automatically stand resolved. 7.. The issues to be decided in these two O.Ps. are as follows: 1.. Whether imported sugar has been declared to be goods of special importance and if so subject to the restrictions prescribed under the Central Sales Tax Act and article 286 of the Constitution of India? 2.. Whether exemption granted to sugar produced and manufactured in India under serial number 3 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 by Tamil Nadu Amendment Act 3 of 1994 with effect from August 11, 1993, thus imposing tax on imported sugar is violative of articles 14, 301 and 304 of the Constitution of India? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above entry. It was held that it is not a condition for exemption that the goods must have suffered excise duty. 12.. In [1994] 92 STC 471 (Mad.) (State of Tamil Nadu v. Asian Engineering Company) it was held that rubber belting was declared goods and unless the State Act fixes the rate and stage of taxation they are not exigible to tax. The Supreme Court in [1985] 60 STC 1 (Govind Saran Ganga Saran v. Commissioner of Sales Tax) said the same thing, namely, that if the State Act does not fix the ascertainable point of taxation clearly no tax was payable on declared goods. 13.. The above decisions do not significantly advance the case of the petitioners. Before us we are facing an entirely new situation. To recapitulate the facts, at the relevant point of time section 14(viii) of the Central Sales Tax Act says: "Sugar covered under sub-heading Nos. 1701.20, 1701.31, 1701.39 and 1702.11 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)." 14.. Emphasis is laid on the word "covered" and the actual sub-headings. Some meaning has to be given for the word "covered" as against the word "defined" which is normally employed. Whether it conveys a broader or narrower m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be looked into from the angle of the purpose for which a declaration is made. Even if follow the parameters as given in the Text Book Chaturvedi's Central Sales Tax Laws, we are unable to hold in favour of the petitioners. The following characteristics should be exhibited by the commodity for finding a place in the list. They are: "(i) it should be raw material or largely in the nature of raw material; (ii) either as raw material, or later as finished goods based on such material, it should, in terms of volume of inter-State transactions, be of special importance in inter-State trade; and (iii) in terms of the country as a whole, it should also be of special importance from the point of view of the consumer or industry." The above parameters are for the Parliament and when Parliament has clearly indicated what types of sugars are "declared goods" we have no say in the matter. 17.. Therefore, on the first issue we hold in favour of the Revenue that imported sugar is not declared goods as per section 14(viii) of the Central Sales Tax Act as it stood at the relevant time. As we have already indicated once we hold that imported sugar formed a class of its own in the matter of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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