Classification of sambharam as butter milk upheld for sales tax purposes under the Kerala General Sales Tax Act.

Adding a small quantity of ginger, chilly and salt to butter milk does not change its essential character or commercial identity. Sambharam therefore continues to be butter milk for classification purposes and remains covered by Entry 49 of the First Schedule to the Kerala General Sales Tax Act. The contrary departmental clarification was not sustainable, and the commodity was treated as eligible for the reduced rate of tax.

---

---

Issues: Whether sambharam prepared by adding ginger, chilly and salt to butter milk ceases to be butter milk and falls outside Entry 49 of the First Schedule to the Kerala General Sales Tax Act.

Analysis: The addition of a small quantity of ginger, chilly and salt to butter milk does not bring about a change in its essential character or commercial identity. Sambharam continues to be butter milk for classification purposes. The commodity therefore remains covered by Entry 49 of the First Schedule, and the contrary view based on the departmental clarification was not sustainable.

Conclusion: Sambharam is classifiable as butter milk under Entry 49 of the First Schedule to the Kerala General Sales Tax Act, and the assessee is entitled to the reduced rate of tax.

---