Exemption for sugar products denied where golden syrup was held outside the statutory entry for sugar.

Unflavoured liquid sugar sold as golden syrup was held not to fall within Entry 31-B of the Karnataka Sales Tax Act, which exempts "sugar other than sugar candy, confectionery and the like". The Karnataka HC construed "sugar" in the entry as referring to sugar in its ordinary sense, not every liquid or processed form in which sugar may appear. Because the product was prepared by boiling sugar with water and salt into a bottled syrup, it was treated as a distinct form and not as exempt sugar under the entry. Exemption was therefore denied and the result was against the assessee.

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Issues: Whether unflavoured liquid sugar (golden syrup) sold by the assessee falls within Entry 31-B of the Fifth Schedule to the Karnataka Sales Tax Act as "sugar other than sugar candy, confectionery and the like".

Analysis: The expression "sugar" in the entry was construed as referring to sugar itself and not to every form or variety in which sugar may appear. The syrup sold by the assessee was prepared by boiling sugar with water and salt into a liquid form and sold in bottles. On that basis, it was treated as a form of sugar and not as sugar in the sense in which the exemption entry was framed.

Conclusion: The syrup did not fall within Entry 31-B and was not entitled to exemption; the decision was against the assessee.

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