Exemption for milk entries extends to skimmed milk powder when statutory wording and commercial understanding show a broad commodity description.

Skimmed milk powder was treated as falling within the exemption entry for "milk, whole or separated or reconstituted" under the Bombay Sales Tax Act, 1959, because the statutory wording was read broadly, the legislative history showed no restriction to fresh liquid milk alone, and milk powder was understood as dehydrated milk retaining its essential character. The court also accepted that there was material before the Tribunal to support the common-parlance finding that skimmed milk powder is regarded as milk. On that basis, the exemption was applied in favour of the assessee.

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Issues: (i) Whether skimmed milk powder falls within entry 36 of Schedule A to the Bombay Sales Tax Act, 1959, namely, "Milk, whole or separated or reconstituted". (ii) Whether there was evidence before the Tribunal to hold that skimmed milk powder is understood as milk in common parlance.

Issue (i): Whether skimmed milk powder falls within entry 36 of Schedule A to the Bombay Sales Tax Act, 1959, namely, "Milk, whole or separated or reconstituted".

Analysis: The entry was construed in the context of the statutory scheme granting exemption to goods in Schedule A. The expression "milk" was held not to be confined to fresh liquid milk alone, because the entry itself extended to "separated" and "reconstituted" milk. The court considered the nature of milk powder, its composition, its commercial use, and the legislative history of the entry, which showed that milk powder had earlier been expressly included and that the later amendment narrowing the entry to "milk in liquid form" indicated that the earlier wording was wider. The court also treated the material relied upon from earlier determination proceedings as supporting the conclusion that milk powder is merely milk in dehydrated form and retains the essential character of milk.

Conclusion: Skimmed milk powder is covered by entry 36 of Schedule A to the Bombay Sales Tax Act, 1959, and the answer is in favour of the assessee.

Issue (ii): Whether there was evidence before the Tribunal to hold that skimmed milk powder is understood as milk in common parlance.

Analysis: The record showed that both sides relied upon the factual position recorded in earlier determination proceedings concerning milk powder, and the Tribunal proceeded on that basis. The court held that the factual material before the Tribunal was sufficient to support the conclusion reached by it, and that it could not be said that no evidence existed for treating skimmed milk powder as milk in common parlance.

Conclusion: There was material before the Tribunal to support its finding, and the answer is in favour of the assessee.

Final Conclusion: The exemption entry was interpreted broadly to include skimmed milk powder, and the Tribunal's decision was upheld on both referred questions.

Ratio Decidendi: Where a fiscal entry uses a broad commodity description and its wording and legislative history show no restriction to a single physical form, the commodity is construed to include its ordinary commercial and dehydrated forms unless the statute expressly limits it otherwise.

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