Ordinary meaning of tobacco exemption confirms zarda qualifies for sales tax relief under the Andhra Pradesh Act.

The article explains that zarda, as a chewing tobacco product, falls within the ordinary meaning of "tobacco and all its products" under the Andhra Pradesh General Sales Tax Act, 1957, because the Act did not define tobacco or require a narrower meaning from another statute. The exemption in section 8 read with item 7 of Schedule 5 therefore applied on the plain language of the Act. A restrictive reading tied to central excise duty was rejected as unsupported by the statutory text, and the historical excise background did not limit the exemption to goods actually subjected to that duty.

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Issues: Whether zarda, being a variety of chewing tobacco, was exempt from sales tax under item 7 of Schedule 5 of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: Zarda was found, on its ordinary meaning and chemical composition, to be a tobacco product. Tobacco was not defined in the Act, and there was no indication that it had to bear any special meaning from another enactment. The exemption in section 8 read with item 7 of Schedule 5 therefore applied on the plain meaning of the words used. The restricted construction adopted by the Tribunal, tying exemption to the levy of central excise duty, was unsupported by the Act. Even on the historical background relied upon, zarda did not fall within the categories of tobacco subjected to additional excise duty under the relevant central excise regime, and the exemption notification and amended Schedule were not confined to goods on which such duty had actually been levied.

Conclusion: Zarda was held to be exempt from sales tax and not exigible to tax under the Andhra Pradesh General Sales Tax Act, 1957.

Final Conclusion: The revision succeeded, and the levy of sales tax on zarda was set aside.

Ratio Decidendi: Where a taxing exemption uses the expression "tobacco and all its products" without a restrictive statutory definition, the expression must be given its ordinary meaning, and a chewing tobacco product falling within that meaning cannot be taxed by importing limitations not found in the Act.

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