Interpretation of "fresh vegetables" under sales tax law included sugar-cane and secured exemption from tax.

The Bombay HC interpreted the exemption entry for "fresh vegetables" under the Sales Tax Act and held that sugar-cane fell within that expression. Because "vegetable" was not defined in the Act and was capable of more than one construction, the Court applied the ordinary and natural meaning of the word and accepted a wide reading that included sugar-cane. It also held that any genuine ambiguity in a taxing statute must be resolved in favour of the subject. Later or analogous legislation expressly referring to sugar-cane did not justify an exclusionary inference from the exemption provision, and sugar-cane was therefore exempt from sales tax.

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Issues: Whether sugar-cane fell within the expression "fresh vegetables" in the exemption schedule under the Sales Tax Act and was therefore exempt from sales tax.

Analysis: The expression "vegetable" was not defined in the Act, leaving open more than one possible construction. The Court held that the ordinary and natural meaning of "vegetable" was wide enough to include sugar-cane, and that in a taxing statute any genuine doubt or ambiguity must be resolved in favour of the subject. The Court also declined to draw an exclusionary inference from later or analogous legislation that expressly mentioned sugar-cane, holding that such express mention did not necessarily mean that sugar-cane was outside the broader expression "fresh vegetables" in the exemption provision.

Conclusion: Sugar-cane was held to be covered by "fresh vegetables" and therefore exempt from sales tax.

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