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TMI Blog2015 (4) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... een chilly bits), edible vegetable oil, common antioxidant and spice oleoresins. The dehydrated vegetable content in the entire pack of Vegit Aloo Hara Bara Kebab is 85%. (b) Vegit-Aloo Veg Cutlet: Ingredients are dehydrated potato flakes, dehydrated vegetables (carrot, green peas, capsicum, french beans), refined vegetable oil, salt, yeast extract, mixed spices, maltodextrin, hydrolysed vegetable protein, flavour enhancer and spice oleoresins. The dehydrated vegetable content in the entire pack of Vegit Aloo Veg Cutlet is 85%. (c) Vegit-Aloo Yummy Cheese Balls: Ingredients are dehydrated potato flakes (51%), cheese powder (15%), skimmed milk powder, potato starch, maltodextrin, dehydrated onion bits, edible vegetable fats, mixed spices, common salt, flavour enhancer. The dehydrated vegetable content in the entire pack of Vegit Aloo Yummy Cheese Balls is 60%. (d) Vegit-Aloo Mazedar Bonda: Ingredients are dehydrated potato flakes (63.4%), dehydrated onion bits (12%), edible vegetable oil, mixed spices, common salt, dehydrated green chilly powder (1.6%), maltodextrin, dehydrated ginger bits, sugar powder, raw mango powder, psyllum husk, spice oleoresins, antioxidant. The dehydrate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Learned Senior Counsel Sri K P Kumar, appearing for the assessee/respondent contended that the Entry 3 of III Schedule to the Act is not a restricted entry, the word "including" enlarges the scope of the preceding words viz., "processed fruits and vegetables" indicating that the Entry is only illustrative and not exhaustive and that the 'commodities' enumerated after the words 'including' definitely gives the intention of the Legislature to bring similar commodities within the said Entry. Learned counsel further argued that the main composition of the commodities in question being "potato" - a vegetable, predominantly known by the common man as a vegetable, has under gone some processing and mixed with certain ingredients to make it a snack mix. As such, giving a different interpretation to the product, would defeat the intention of the Legislature. The learned Single Judge having examined these aspects has rightly held that the products in question fall under Entry 3 of third Schedule to the Act and it does not call for any interference. Reliance was placed on the following judgments: 1. M/s Saraswathi Sugar Mills v. Haryana State Board and Others (AIR 1992 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it snack Mix. 12. In the case of A P Products v. State of A.P. [2007] 6 SCC 365, the Hon'ble Supreme Court has held that, "the Masala powder prepared after grinding and mixing various spices and the condiments in certain preparation is commercially a different commodity liable to be taxed." The Hon'ble Supreme Court in the said Judgment has further held as under: "The ingredients used in preparation of masala after grinding and mixing lose their own identity and character and a new product separately known to the commercial world comes into existence. The sales tax is intended to tax sales of different commercial commodities emerge into existence, they become separately taxable goods or entities for the purpose of sales tax. Therefore, "masala powder" prepared after grinding and mixing of various spices and condiments in certain proportion is commercially a different commodity liable to be taxed." 13. In the case of ANNAPURNA BISCUIT MANUFACTURING CO. Vs. COMMISSIONER OF SALES TAX, U.P., LUCKNOW reported in 1981 (48) STC page 254, the Hon'ble Supreme Court, while considering the expression "cooked food" used in certain notifications issued under the U.P. Sales Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication of 'potato chips' is altogether different from the classification of commodities now in question before this Court." (Emphasis Supplied). 17. We have read through the relevant entries of Assam VAT Act which were under consideration of the Guwahati High Court as regards 'processed vegetables'. Several amendments were brought in to the said entry and with effect from October 16, 2008, the entry 80 of Part A of the second schedule to the Assam VAT Act, reads as follows: "Processed or preserved fruits and vegetables excluding fruit jams, jelly, pickles, fruit squash, paste, fruit drinks and fruit juice but excluding 'potato chips', banana chips and cooked preparation of the vegetables and fruits." 18. By the said amendment, 'potato chips' are excluded by explicit terms. Considering the legislative history of the said entry and the explicit exclusion of 'potato chips' by the subsequent amendment, Guwahati High Court has held that 'processed vegetables and fruits' is an inclusive definition, which has been followed by Madras and Uttarakhand High Courts. The entry under the Karnataka Act is no way similar to Assam VAT Act amended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court has held that diesel being specifically and intentionally included in the definition of raw material by the Legislature, the question whether it is directly or indirectly used in the process of manufacture is irrelevant. 21. The learned Senior counsel appearing for the assessee has relied on the Judgment of this Court in the case of STOVEKRAFT PVT LTD. Vs. STATE OF KARNATAKA reported in [(2006) 147 STC 329 (Karn)] wherein this Court has held that stainless steel LPG stove, kerosene stove and vacuum flask falls under the phrase - "All utensils". This Court having observed the dictionary meaning of the word, 'utensil' is a vessel, tool, implement etc.; especially for domestic or farming use; fit for use, has arrived at a conclusion that the word, 'all' and 'including' has special significance and classified stainless steel stove, kerosene stove and vacuum flask as utensils. 22. To distinguish between "manufacture" and "processing", the learned Senior Counsel for the assessee relied on the judgment of the Hon'ble Supreme Court in case of M/S. SARASWATHI SUGAR MILLS VS HARYANA STATE BOARD AND OTHERS has held as under : "15. The essential poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether they are covered or not by the main entry. The item about which there is no scope for doubt or there is comparatively less scope for doubt would accordingly stand automatically covered by the main items in the entry. In the absence of any inclusion or exclusion of words in the expression "paper, it must be held that it includes 'all kinds of paper'." 24. The Hon'ble Supreme Court in the case of Hindustan Aluminium Corporation vs State of U.P. reported in AIR 1981 SC 1649 dealing with the expression, 'including' has held thus: 'It is true that in the notification dated May 30, 1975, as amended retrospectively on August 14, 1975, the entry reads : "All kinds of minerals, ores, metals and alloys including sheets and circles used in the manufacture of brass wares and scraps containing only any of the metals, copper, tin, zinc or nickel except those included in any other notification issued under the Act." But here, the expression "including" does not enlarge the meaning of the word "metal" and must be understood in a conjunctive sense, as a substitute for "and". This is the reasonable and proper construction having regard to the scheme followed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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