Sugar exemption covers patasa, harda and alchidana when they retain the essential character of sugar.

Sugar articles containing more than 90 per cent sucrose were treated as "sugar" for exemption purposes because the taxing entry adopted the statutory definition covering any form of sugar. Patasa, harda and alchidana retained the essential character of sugar, and their shape, texture, or festive use did not change that character. The provision was read broadly to include sugar in whatever form it appears, not only a commercial variety of sugar. On that construction, the articles fell within the exempt entry and were not liable to sales tax.

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Issues: Whether patasa, harda and alchidana, being small lumps of sugar containing more than 90 per cent sucrose, fall within the expression "sugar" in entry 47 of Schedule A to the Bombay Sales Tax Act, 1959 and are therefore exempt from sales tax.

Analysis: Entry 47 exempted sugar as defined in item No. 8 of the First Schedule to the Central Excises and Salt Act, 1944, which defined sugar as any form of sugar containing more than 90 per cent sucrose. The articles in question were found to be pure sugar products with the requisite sucrose content, capable of being used like sugar-candy, and their shape or festive use did not alter their essential character. The expression "any form of sugar" was construed to include sugar in whatever shape or texture it might manifest, and not merely a commercial variety of sugar.

Conclusion: Patasa, harda and alchidana were held to be forms of sugar within entry 47 and were exempt from tax.

Ratio Decidendi: Where a taxing entry exempts sugar as defined by a statutory definition covering any form of sugar with the requisite sucrose content, articles retaining the essential character of sugar are exempt notwithstanding their shape, texture, or festive use.

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