Broad construction of sales tax exemption for sugar includes sugar candy as a pure form of the commodity.

The expression "sugar" in item 6 of Schedule V to the Andhra Pradesh General Sales Tax Act, 1957 was construed broadly to include sugar candy. Read in the legislative context of the central levy on goods of special importance and the State's policy against double taxation, the exemption was held to cover a purer form of sugar containing no ingredient other than sugar. The omission of the words "sugar candy" from the Schedule was not treated as a clear exclusion, and the commodity remained exempt from sales tax.

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Issues: Whether the expression "sugar" in item 6 of Schedule V of the Andhra Pradesh General Sales Tax Act, 1957 includes sugar candy so as to exempt its sale from tax.

Analysis: The exemption was introduced against the background of the Central levy on goods of special importance and the State's withdrawal of sales tax on sugar to avoid double taxation. The expression "sugar" in the State enactment had to be read in the light of that legislative setting and the corresponding central legislation. Sugar candy is only purified sugar and contains no ingredient other than sugar. In the absence of any clear indication that the Legislature intended to confine the exemption to sugar in a narrow or ordinary form, the broader meaning had to prevail. The omission of the words "sugar candy" from the schedule did not show an intention to exclude it.

Conclusion: Sugar candy is included within the expression "sugar" in item 6 of Schedule V and is exempt from tax under the Act. The assessee is not liable to tax on sugar candy.

Final Conclusion: The assessments and remand orders based on the exclusion of sugar candy from the term "sugar" could not stand, and the assessee obtained relief from taxation on the commodity.

Ratio Decidendi: Where a taxing exemption uses a generic commercial term and the statutory context shows an intention to exempt all forms of the commodity, the term must be construed to include a purer form of the same commodity unless the statute clearly excludes it.

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