Declared goods treatment for fried gram bars sales tax above the Central Sales Tax ceiling.

Fried or parched gram was treated as falling within the declared goods category of pulses and grams under the Central Sales Tax Act, because frying or parching did not create a new commercial commodity in ordinary parlance. Section 15 limited State taxation of declared goods to a single stage and to a maximum of 4 per cent, so any higher levy on such turnover was impermissible. The State amendment and later notification could not override that statutory ceiling. The note records that the tax demand on fried gram turnover in excess of the prescribed limit could not be sustained.

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Issues: Whether fried gram or parched gram fell within pulses and grams declared as goods of special importance under the Central Sales Tax Act and the corresponding State schedule entry, and whether the State could levy sales tax exceeding 4 per cent on such turnover.

Analysis: Section 14 of the Central Sales Tax Act, 1956, as amended, brought pulses within the category of declared goods, and section 15 restricted State taxation of such goods to a single stage and to not more than 4 per cent. The State amendment and the later notification could not validly create a higher levy for goods already covered by the declared goods entry. In common parlance, fried or parched gram continued to be gram or dhal, and the process of frying or parching did not create a new commercial commodity. The statutory phrase covering pulses and grams was held to include those goods in all their forms, including parched and fried form.

Conclusion: Fried gram or parched gram was held to be covered by the declared goods entry, and the additional levy over 4 per cent was held impermissible.

Final Conclusion: The writ petitions succeeded and the demand for tax in excess of the statutory ceiling on fried gram turnover could not be sustained.

Ratio Decidendi: Goods described as pulses or grams in the declared goods entry retain that character in ordinary commercial parlance notwithstanding parching or frying, and the State cannot impose a levy beyond the restriction fixed by section 15 of the Central Sales Tax Act, 1956.

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