Skip to content


Avadh Sugar Mills Ltd. Vs. the Sales Tax Officer, Sitapur and anr. - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtSupreme Court of India
Decided On
Case NumberCivil Appeal No. 1352 of 1970
Judge
Reported inAIR1973SC2440; (1974)3SCC271; [1973]3SCR546; [1973]31STC469(SC)
AppellantAvadh Sugar Mills Ltd.
RespondentThe Sales Tax Officer, Sitapur and anr.
Cases ReferredIndore v. Jaswant Singh Charan Singh
Prior historyFrom the Judgment and Order, in Spl. Appl. No. 94 of 1967, dated August 7, 1967 of the Allahabad High Court reported in (1968) 21 STC 295
Excerpt:
- section 19 & rule 15 of the air force rules, 1969: [dr. arijit pasayat & ashok kumar ganguly, jj] compulsory retirement: - failure to submit the property returns within time - transactions were between 1981 to 1986 and the return was belatedly filed after about six years on 23.3.1992 - therefore the conduct was most unbecoming of an officer of the air force -prescribed period for filing property return is six months and though appellant was aware of the requirement he did not choose to file any return, even during the course of enquiry no return was filed and ultimately after show cause notice was issued it was filed - held, there was not only belated filing of the returns but also there were several other instances of misconduct. order of compulsory retirement upheld. labour &..........is an appeal by certificate. the only question that arises for decision is whether groundnut is oilseed. the high court has come to the conclusion that the groundnut is oilseed. the question is to the nature of groundnut came up for consideration in connection with the levy of purchase-tax on the purchase of oilseed. the assessee in this case is a manufacturer of oil and the assessee appears to have purchased groundnuts in large quantity for the manufacture of oil. he contended before the assessing authorities as well as before the high court, unsuccessfully, that groundnut is not oilseed. in support of that contention, he relied on the decision of the madhya pradesh high court in commissioner of sales tax, madhya pradesh, indore v. bakhat rai & co. 18 s.t.c. 285 and the decision of a.....
Judgment:

K.S. Hegde, J.

1. This is an appeal by certificate. The only question that arises for decision is whether groundnut is oilseed. The High Court has come to the conclusion that the groundnut is oilseed. The question is to the nature of groundnut came up for consideration in connection with the levy of purchase-tax on the purchase of oilseed. The assessee in this case is a manufacturer of oil and the assessee appears to have purchased groundnuts in large quantity for the manufacture of oil. He contended before the assessing authorities as well as before the High Court, unsuccessfully, that groundnut is not oilseed. In support of that contention, he relied on the decision of the Madhya Pradesh High Court in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Bakhat Rai & Co. 18 S.T.C. 285 and the decision of a single Judge of Punjab & Haryana High Court in Hans Raj Choudhri v. J.S. Rajyana, Excise and Taxation Officer 19 S.T.C. 489. These two decisions undoubtedly support his contention. The learned Judge of the Allahabad High Court have not accepted those decisions as laying down the law correctly and we are in agreement with the view taken by the learned Judges of the Allahabad High Court.

2. The petitioner in his Writ Petition has definitely stated that he purchased groundnuts mostly from cultivators for the manufacture of oil. Hence there is no doubt that he purchased groundnut for the purpose of manufacturing oil.

3. We shall now proceed to consider whether groundnuts are seeds and further whether they are oilseeds. In finding out the true meaning of term 'oilseeds' found in the Sales-tax law in question, we are not to refer to dictionaries. We are to find out the meaning ascribed to that term in commercial parlance. See the decision of this Court in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Jaswant Singh Charan Singh 19 S.T.C. 469. There can hardly be any doubt that in commercial circles groundnut is dealt with as oilseed. The commercial journals and newspapers while quoting the market price of oilseeds list groundnuts as one of the species of oilseeds. From this, it is clear that in commercial circles groundnut is treated as oilseed.

4. A seed is one which germinates. It is not disputed that the groundnut germinates. Hence it is undoubtedly seed. The next question is whether it is generally used for manufacture of oil. Here again, there can hardly be any doubt that groundnut is mostly used for the manufacture of groundnut oil which is used in the manufacture of Dalda and other cooking media. Groundnut is one of the items which is mostly used in this country for the manufacture of cooking media.

5. In our opinion, both the Madhya Pradesh High Court and the Punjab & Haryana High Court were wrong in holding that groundnut is not oilseed.

6. For the reasons mentioned above, this appeal is dismissed with costs.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //