Batasha made from khandsari sugar is not a separate taxable commodity and cannot be taxed again as unclassified goods.

Batasha prepared from khandsari sugar is not taxable as an unclassified item where the same khandsari sugar is already subjected to tax under the relevant section 3-A notification. The court treated batasha as only a different form of sugar, produced mechanically without any added ingredient, and not as a separate commodity. The exclusion of khandsari sugar and batasha from an earlier exemption notification was held to define the scope of exemption, not to create distinct taxable goods. As single-point taxation had already attached to khandsari sugar, its derivative form could not be taxed again as unclassified goods.

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Issues: Whether batasha prepared from khandsari sugar is taxable as an unclassified item.

Analysis: Khandsari sugar was already brought to tax under the relevant notification issued under section 3-A, and the assessee prepared batashas from locally purchased khandsari sugar by a mechanical process without adding any other ingredient. The court followed the principle that batasha is only a different form of sugar and not a separate commodity. The exclusion of khandsari sugar and batasha from an earlier exemption notification did not mean that they were different commodities; it only reflected the scope of the exemption. Once khandsari sugar itself was subjected to single-point taxation, its different forms could not be taxed again as unclassified goods.

Conclusion: Batasha is not taxable as an unclassified item. The question was answered in the negative, in favour of the assessee and against the department.

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