Inclusive definition of tobacco covers gudakhu, extending tax exemption where the product remains tobacco-based despite added ingredients.

A broad statutory definition of "tobacco" can extend to gudakhu when the product is manufactured from tobacco, even if other ingredients are present. The text explains that section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 adopts the meaning in the Central Excises and Salt Act, 1944, and that this inclusive definition covers any form of tobacco, cured or uncured, manufactured or not. It further notes that the concept of manufacture in relation to tobacco is inclusive, not exhaustive. On that basis, gudakhu falls within "tobacco" and is treated as exempt from sales tax under the Orissa Sales Tax Act, 1947 and the Central Sales Tax Act, 1956.

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Issues: Whether gudakhu falls within the expression "tobacco" in section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, so as to be exempt from sales tax under the Orissa Sales Tax Act, 1947.

Analysis: The relevant notification substituted the taxable entry with "tobacco" as defined in section 2(c) of the 1957 Act, which in turn adopts the meaning given in item 4 of the First Schedule to the Central Excises and Salt Act, 1944. That definition is wide, covering any form of tobacco whether cured or uncured and whether manufactured or not. Section 2(f) of the 1944 Act gives an inclusive meaning to manufacture and, in relation to tobacco, includes preparation of specified forms of tobacco; the enumeration is not exhaustive. Gudakhu is manufactured from tobacco and, notwithstanding the presence of other ingredients, remains within the broad statutory concept of manufactured tobacco.

Conclusion: Gudakhu is covered by the expression "tobacco" under section 2(c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and is exempt from tax under the Orissa Sales Tax Act, 1947 and the Central Sales Tax Act, 1956.

Final Conclusion: The reference was answered in favour of the assessee by holding that gudakhu was not taxable during the relevant period.

Ratio Decidendi: Where a taxing entry adopts an inclusive statutory definition of tobacco, goods predominantly composed of tobacco remain covered even if mixed with other ingredients, unless the statute clearly excludes them.

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