Sugar candy treated as exempt sugar, not hard-boiled confectionery, under the sales tax notifications.

Sugar candy was treated as "sugar" for the exemption notification of 3 March 1958 because the term was read in light of the central excise-linked scheme and the statutory sucrose-content definition; a product remaining sugar in a different form and retaining the requisite sucrose content fell within the exemption and was outside sales tax under the West Bengal Sales Tax Act, 1954 and the earlier Bengal Finance (Sales Tax) Act, 1941. It was also not covered by the 6 February 1967 notification as hard-boiled sugar confectionery, since that category contemplated confectionery distinct from pure sugar merely processed by boiling or crystallisation. On that reasoning, sales tax could not be levied on the sugar candy.

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Issues: (i) Whether sugar candy was covered by the exemption granted by the notification dated 3 March 1958 issued under section 26 of the West Bengal Sales Tax Act, 1954, so as to keep it outside the operation of the West Bengal Sales Tax Act, 1954 and the earlier Bengal Finance (Sales Tax) Act, 1941. (ii) Whether sugar candy fell within the commodities notified on 6 February 1967 as taxable goods, in particular as hard-boiled sugar confectionery.

Issue (i): Whether sugar candy was covered by the exemption granted by the notification dated 3 March 1958 issued under section 26 of the West Bengal Sales Tax Act, 1954, so as to keep it outside the operation of the West Bengal Sales Tax Act, 1954 and the earlier Bengal Finance (Sales Tax) Act, 1941.

Analysis: The notification exempted "sugar" as a notified commodity falling within section 26, and the expression had to be read in the context of the Central enactment governing additional excise duty and the corresponding definition of sugar as any form of sugar having sucrose content above ninety per cent. The exempting notification was issued to enable the State to participate in the central pool of additional duties, and the scheme would be inconsistent unless sugar in all its forms, including sugar candy, was treated as covered. The material showed that the product manufactured by the petitioner remained sugar in a different form and retained the requisite sucrose content. The absence of a separate definition in the State Act or notification did not justify a narrower commercial meaning.

Conclusion: Sugar candy was held to be included in the term "sugar" and was exempt from sales tax under the West Bengal Sales Tax Act, 1954, and consequently not liable under the Bengal Finance (Sales Tax) Act, 1941 either.

Issue (ii): Whether sugar candy fell within the commodities notified on 6 February 1967 as taxable goods, in particular as hard-boiled sugar confectionery.

Analysis: The notified category of hard-boiled sugar confectionery required a confectionery product consisting of more than one ingredient and not pure sugar merely processed into another form. Sugar candy manufactured from sugar with more than ninety per cent sucrose remained sugar and did not become confectionery merely because it had undergone boiling or crystallisation. On the facts, the commodity did not answer the notified description.

Conclusion: Sugar candy was not covered by the 6 February 1967 notification and did not become taxable as hard-boiled sugar confectionery.

Final Conclusion: The petitioner was entitled to protection against assessment and enforcement of sales tax on the sugar candy manufactured by him, and the writ petition succeeded.

Ratio Decidendi: Where a taxing exemption notification refers to sugar as a notified commodity linked to the central excise scheme, the expression covers sugar in all forms satisfying the statutory sucrose-content definition, and a processed product that remains sugar does not become taxable as confectionery unless it clearly answers the notified description.

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