Sugar-candy treated as sugar for sales tax, but exempt-period turnover had to be excluded from assessment.

Sugar-candy and palm sugar-candy were treated as sugar for sales tax purposes because they were regarded as sugar in another form, not a distinct substance, with the taxing character determined by composition and the statutory treatment of sugar under allied enactments. The commercial distinction between sugar and sugar-candy did not alter their basic identity for the West Bengal Sales Tax Act, 1954. As a result, the assessment remained valid for periods when sugar was taxable, but sales during the later exempt period could not be taxed and the assessment had to be recomputed to exclude that portion.

---

---

Issues: Whether sugar-candy and palm sugar-candy are included in the expression "sugar" for purposes of sales tax under the West Bengal Sales Tax Act, 1954, and whether the assessment for the relevant period could stand in full.

Analysis: Sugar-candy was held to be sugar in another form and not a distinct substance for sales tax purposes. The Court relied on the composition of sugar-candy, the meaning of sugar in allied central enactments, and the legislative background showing that sugar was treated as a commodity capable of exemption or taxation as such. Even though sugar and sugar-candy may be different commercial commodities in trade, that distinction did not alter the basic identity of sugar-candy as sugar for the purpose of the taxing statute. On that footing, the assessment for the earlier periods, when sugar was taxable, remained valid. However, for the later period when sugar stood exempted under the relevant notification, sales of sugar-candy during that exempt period could not be taxed, and the assessment had to be modified to exclude that portion.

Conclusion: Sugar-candy and palm sugar-candy were treated as sugar for sales tax purposes, but the assessment was valid only to the extent it related to periods when sugar was taxable; the assessment for the exempt period was quashed and required recomputation.

---