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The State of Andhra Pradesh Vs. Kajjam Ramachandraiah Gari Anantaiah - Court Judgment

LegalCrystal Citation
Subject Sales Tax
CourtAndhra Pradesh High Court
Decided On
Case Number Tax Revision Case No. 67 of 1960
Judge
Reported in[1961]12STC795(AP)
AppellantThe State of Andhra Pradesh
RespondentKajjam Ramachandraiah Gari Anantaiah
Appellant Advocate P. Ramachandra Reddy, The Third Government Pleader
Respondent Advocate E. Venkatesam and ; P. Kodanda Ramaiah, Advs.
Disposition Revision dismissed
Excerpt:
.....narayana, jj] meaning when there is express mention of certain things, then anything not mentioned is excluded. - manufacture of varnishes, soaps and the like, or in lubrication and volatile oils used chiefly in medicines, perfumes, cosmetics and the like. these letters clearly show that coriander seeds, at any rate, have to be put through a process before they can yield oil and the quantity of the oil varies from 0.1 to 1.0 per cent. in these circumstances, we are clearly of the view that the legislature had never contemplated nor intended to include such commodities within the definition of oil seeds......1957-58 out of which an amount of rs. 18,143-60 np. relates to the purchase turnover of coriander, voma and sompu. this turnover was accordingly assessed for the year and in appeal the deputy commissioner also confirmed it. the appellate tribunal, however, allowed the appeal holding that these three articles are not included in the term oil seeds. item 3 of schedule iv is as follows:--------------------------------------------------------------------------------description of the goods point of levy rate of tax-------------------------------------------------------------------------------oil seeds, that is to say, seeds yielding at the point of 2 np. in the non-volatile oils used for human con- first purchase rupee.sumption, or in industry, or in the in the state.manufacture of.....
Judgment:

Jaganmohan Reddy, J.

1. The short question that falls for determination in this T. R. C. is whether dhania (coriander), ajwan (voma) and sompu come within the definition of oil seeds, the subject-matter of item 3 of Schedule IV of the Andhra Pradesh General Sales Tax Act. The respondents are general merchants and commission agents at Vikarabad and were assessed to sales tax on a turnover of Rs. 97,442-90 nP. for the year 1957-58 out of which an amount of Rs. 18,143-60 nP. relates to the purchase turnover of coriander, voma and sompu. This turnover was accordingly assessed for the year and in appeal the Deputy Commissioner also confirmed it. The Appellate Tribunal, however, allowed the appeal holding that these three articles are not included in the term oil seeds. Item 3 of Schedule IV is as follows:-

-------------------------------------------------------------------------------Description of the goods Point of levy Rate of tax-------------------------------------------------------------------------------Oil seeds, that is to say, seeds yielding At the point of 2 nP. in the non-volatile oils used for human con- first purchase rupee.sumption, or in industry, or in the in the State.manufacture of varnishes, soaps and the like, or in lubrication and volatile oils used chiefly in medicines, perfumes, cosmetics and the like.-------------------------------------------------------------------------------

2. It is not denied that coriander, voma and sompu are seeds, but it is contested that they are oil seeds. Learned Government Advocate contends that these seeds are oil seeds, in that oil can be extracted from them. In support of his contention, he has produced the oil extracted from these articles. The important question, to our mind, is not whether oil can be extracted from these seeds, but whether they are known in this country in common parlance to be oil seeds within the contemplation of the Legislature. It is not difficult to envisage with the increase in scientific knowledge and technological development that oil can be extracted from any seed which may not be known as an oil seed in common parlance. Even rice or husk might yield oil if it is put through a scientific process. What was in contemplation of the Legislature when it enacted item 3 of Schedule IV was to tax the turnover of oil seeds which in common parlance would be taken as oil seeds, but not every seed from which by some process or other oil can be extracted. A copy of the letter from the Director of the National Chemical Laboratory, Poona, dated 29th January, 1959, addressed to the Secretary, Council of Scientific and Industrial Research, New Delhi, would show that the amount of oil extracted from coriander is so negligible that it cannot be either used for industrial or any other purposes. It is also evident that oil from these commodities is not generally known to be extracted in this country. This is what the letter says :

Coriander oil is obtained by steam distillation of coriander seeds ; most of the oil of commerce is obtained from Russian and Hungarian sources. Certain quantities of the oil are also produced in other countries including U.S.A. The oil content of the seeds will depend on the quality of the seeds and may vary from 0.1 to 1.0 per cent. According to Guntur (Essential Oil, Vol. IV, page 608) the oil content of the East Indian coriander is 0.15 to 0.25 per cent. The actual oil content of the South Indian variety can be determined only by carrying out actual steam distillation experiments. We have no data at our dispoal as regards the total quantity of coriander seeds available in India. As far as our knowledge goes coriander oil is now not produced in the country.

3. Similarly, the Central Food Technological Research Institute, Mysore, by their letter dated the 18th February, 1959, have stated that the fat content of coriander is about 20.26 per cent, and the essential oil content is 1.4 per cent. They further state that the essential oilcan be obtained by solvent extraction followed by fractional purification. These letters clearly show that coriander seeds, at any rate, have to be put through a process before they can yield oil and the quantity of the oil varies from 0.1 to 1.0 per cent. There is, however, no data available before us from which we can say what the percentage of oil that can be extracted from voma and sompu is. But from the samples produced, it would appear that the oil extracted is quite negligible. It is not disputed that the three commodities referred to are used as spices and have not been known in the country as oil seeds. Further, there is no evidence to show that any oil is extracted in this country or that the oil extracted from these is used commercially or industrially or can be bought in the market. In these circumstances, we are clearly of the view that the Legislature had never contemplated nor intended to include such commodities within the definition of oil seeds.

4. In our view therefore, this revision must be dismissed with costs. Advocate's fee Rs. 50.


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